Transit Oriented Development (TOD)

Syllabus: GS3/Infrastructure

Context

• Indian cities are on the brink of a transportation revolution, with a projected expenditure of ₹3 trillion (between 2022–2027) set to be spent on approved metro rail projects.
  • These investments will not only enhance urban mobility but can also unlock vast economic potential.

About

• Studies reveal that investment in public transportation can generate thousands of jobs and deliver economic returns 5-7 times greater than the initial outlay. 
• To leverage investments in mass transit and maximise the economic benefits as well as improve quality of life in cities, the Government of India approved the National Transit Oriented Development (TOD) Policy and Metro Rail Policy in 2017. 
  • 27 Indian cities are building metro rail systems, and many others are building other forms of rail- and bus-based mass rapid transit systems.

Transit Oriented Development (TOD)

• It means integrated urban places designed to bring people, activities, buildings, and public space together, with easy walking and cycling connection between them and near-excellent transit service to the rest of the city. 
• It means inclusive access for all to local and citywide opportunities and resources by the most efficient and healthful combination of mobility modes, at the lowest financial and environmental cost. 
• Inclusive TOD is a necessary foundation for long-term sustainability, equity, shared prosperity, and civil peace in cities.

Benefits of TOD:

• Reduced Traffic Congestion: By encouraging the use of public transit, TOD can help alleviate road congestion.
• Economic Development: Increases property values and stimulates local economies through increased foot traffic and business opportunities.
• Community Connectivity: Fosters a sense of community by integrating various uses and encouraging social interactions.
• Healthier Lifestyles: Promotes active transportation options like walking and biking, which can improve public health outcomes.

Need for TOD

• The longer work–home commutes, and the congestion and pollution arising from greater private vehicular use, are hampering access to jobs and labour markets, productivity and liveability.
  • Bengaluru, is among the world’s most traffic-congested cities, with the social cost estimated to be 5% of the city’s GDP as per 2018 figures.
• Improving accessibility to jobs, through safe and efficient transport modes, can significantly enhance workforce productivity and participation. 
• Clustering job growth near transit boosts innovation, productivity, and competitiveness — far more than dispersed job growth. 
• It also spurs local economic and real estate development, leading to increased revenues for public agencies.

National Transit Oriented Development (TOD) Policy

• Adopted by the Union ministry of housing and urban affairs (MoHUA) in 2017, the TOD Policy provides for densification of areas around transit corridors by allowing higher built-up area for residential and commercial developments.
• The idea is to promote the use of public transport, encourage walking and cycling, and develop compact walkable communities. 
• The influence zone plan, which is a detailed plan of the area around a transit station, has to be prepared by the local authorities. 
• States can formulate their own TOD policy since land is a state subject or can adopt the Centre’s policy.

Way Ahead

• High-functioning global cities like Hong-Kong have 57% of jobs within 500 m of a transit station, 84% within 1 km, and 96% within 2 km.
  • The city has one of the highest levels of transit use and one of the lowest levels of car ownership. 
  • This has enabled its Gross Value Added per capita to increase by 50%, while fuel consumption and carbon emissions per capita decreased by 10%.
• Apart from conventional funding sources, the government can explore public-private partnerships.
  • The private sector (businesses, developers, financing institutions) can play a significant role in directing commercial and industrial investments, near transit stations.
• Transport infrastructure is a prime driver of economic activity and a developing country like India will continue to invest in it.
  • This must encompass the upgradation of public infrastructure, and institutionalising coordinated action to shape inclusive, low carbon, compact and connected growth.

Source: TH