Gurugram Metro Seeks Land for Real Estate Development to Boost Finances

The Haryana Shahari Vikas Pradhikaran (HSVP) has tasked its zonal office in Gurugram with assessing the feasibility of providing land along the metro route to Gurugram Metro Rail Limited (GMRL) for real estate development. This initiative aims to monetize assets and enhance the project’s financial sustainability, officials stated.

HSVP has also directed the chief town planner in Panchkula to explore the possibility of sharing Transit Orientated Development (TOD) benefits arising from the increased land value along the metro corridor. This directive follows a request made by D Thara, chairperson of GMRL, in September last year.

According to Development and Town Planning (DTCP) officials, TOD benefits are quantified through land value capture and revenue-sharing mechanisms. Property prices within a defined TOD influence zone, typically 500 to 800 meters from metro stations, are assessed before and after metro notification or operation to estimate value appreciation. Additional buildable area permitted under TOD norms is monetized, and the commercial revenue potential from retail, office space, parking, advertising, and station-area footfall is evaluated through market assessments.

GMRL can legitimately seek land or revenue linked to metro corridors, as urban metro projects in India are increasingly financed through value capture rather than fares alone. Haryana’s TOD policy allows higher Floor Area Ratio (FAR), mixed land use, and commercial development near metro corridors, recognizing the land value created by transit infrastructure. However, any land allocation or revenue sharing requires approvals from HSVP, planning authorities, and the state government. GMRL cannot claim private land or automatic rights. Developers pay for additional FAR, with proceeds earmarked for metro funding.

The ownership of land transferred to GMRL for real estate development would be vested with the metro corporation, while FAR benefits will be shared through the department of town and country planning. A letter from the administrator, headquarters, HSVP, dated December 18, directed the administrator of HSVP, Gurugram, to submit a detailed report with clear recommendations regarding the allocation of land parcels along the metro corridor for property development and commercial utilization. The chief town planner in Panchkula was also asked to examine the proposal and submit it for a decision to the competent authority, noting that the policy for TOD has already been framed by the planning wing.

“Administrator, HSVP, Gurugram is requested to provide a detailed report with clear recommendations. CTP, HSVP Panchkula, is requested to examine and submit the same for decision to the competent authority, as a policy of TOD has been framed by the planning wing,” the letter stated.

According to GMRL, developing commercial projects along the metro alignment is crucial to ensure long-term financial sustainability by creating multiple revenue streams. In her letter to HSVP and the Haryana government in September last year, D Thara emphasized the need for support in strengthening the long-term financial sustainability of the Metro Corridor from Millennium City Centre to Cyber City, Gurugram, with a spur to Dwarka Expressway. She requested the allocation of suitable land parcels along the metro corridor for property development and commercial utilization, noting that sharing TOD benefits would support the project’s financial health while contributing to urban regeneration and increased economic activity along the corridor.

GMRL is executing the Gurugram metro rail project in three phases to connect Millennium City Centre with Cyber City via Old Gurugram. Work on the first phase, from Millennium City Centre to Sector 9, has already commenced, while the tendering process for phases two and three is in the final stages.