Transit Oriented Development (TOD)

Why in the News?

The Union Budget 2024-25 announced a plan for the Union Government to develop a transit-oriented development (TOD) strategy for 14 major cities with populations exceeding 3 million, focusing on implementation and financial strategies.

What is Transit-Oriented Development?

Transit-Oriented Development (TOD) integrates land use and transport planning to create sustainable urban growth centers. It aims to develop communities that are walkable, livable, and well-connected to mass transit systems.

• Focus Areas: TOD promotes high-density, mixed land use around transit stations (like metro or BRTS stations) within a 500-800 meter walking distance, encouraging pedestrian and bicycle-friendly environments.

Components of TOD

• Influence Zone: Areas around transit stations should feature compact, mixed-use developments to meet residents' needs and increase public transport ridership.
• Mandatory and Inclusive Housing: Housing in these zones must cater to various economic groups, ensuring inclusivity.
• Multimodal Integration: High-quality transport systems that prioritize pedestrians, bicycles, and feeder services enhance connectivity.
• Vibrant Public Spaces: Areas should include public amenities like parks, playgrounds, and spaces for street vendors to foster community engagement.

Significance of TOD

• Agglomeration Effects: Higher densities and job concentrations boost city competitiveness, potentially increasing economic productivity by 5-10%.
• Livable Cities: TOD creates vibrant communities with quality public spaces and shorter commutes, contributing to overall urban livability.
• Efficient Public Transportation: By clustering jobs and services near transit stations, TOD encourages public transport use and reduces reliance on private vehicles.
• Improved Financing: Increased real estate values near transit can finance further transit improvements and affordable housing, as seen in Hong Kong.
• Climate-Friendly Development: TOD reduces energy consumption and carbon footprints while enhancing public transport options.
• Support for Local Economies: Transit hubs can facilitate local health, education, shopping, and recreational facilities.
• Access to Green Spaces: Ensures citizens have access to open areas while maximizing transit facility usage.

Government Initiatives for TOD

• National TOD Policy: Aims to shift cities from private vehicle dependency to public transport-oriented development, promoting accessibility and green mobility.
• Metro Rail Policy 2017: Focuses on enhancing last-mile connectivity through non-motorized transport infrastructure.
• Smart Cities Mission: Integrates TOD as a key feature, promoting public transport and connectivity.
• Urban Infrastructure Development Fund (UIDF): Supports urban infrastructure development, including TOD in Tier 2 and Tier 3 cities.
• Pradhan Mantri Awas Yojana: Aims to provide affordable housing for urban growth.
• Local Initiatives: Various states, including Delhi and Madhya Pradesh, are developing their own TOD policies.

Challenges with TOD

• Social Exclusion: TOD can lead to rising property prices and gentrification, displacing existing residents.
• Lack of Coordination: Insufficient regional cooperation and siloed city planning can hinder effective implementation.
• Policy Gaps: There may be inadequate regulations to create densities that match public transit accessibility.
• Administrative Constraints: Poor urban design and inconsistencies in planning can impede development.
• Financial Constraints: Failure to capitalize on rising property values and innovative financing mechanisms can limit funding.

Way Forward: World Bank’s 3 Value (3V) Framework

The World Bank suggests a framework to guide TOD planning by assessing the following values:

• Node Value: Importance of a transit station based on passenger traffic, connections, and centrality in the network.
• Place Value: Quality of the area around the station, including land use diversity, availability of essential services, and walkability.
• Market Potential Value: Unrealized market value of station areas, influenced by land demand and supply factors.

This comprehensive approach to TOD aims to enhance urban livability, promote sustainable transportation, and foster inclusive economic growth in major Indian cities.