What is a town planning scheme (TPS)?

A Town Planning Scheme (TPS) is a land development and readjustment tool used primarily in Gujarat and Maharashtra, where landowners in a designated area pool their land, which is then planned, serviced with infrastructure, and redistributed back to owners as smaller but fully developed, serviced plots.

How a Town Planning Scheme Works

• Area delineated : A planning authority identifies an undeveloped or underdeveloped area
• Original plots pooled : All landowners contribute their land to the scheme
• Infrastructure developed : Roads, drainage, utilities, and public amenities are laid out
• Plots reconstituted : Each owner receives a final plot (smaller in area but higher in value)
• Deductions made : Land is deducted for roads, public purposes, and a betterment levy

Where TPS Is Used in India

• Gujarat : most widely used state; Ahmedabad's entire planned areas are TPS-based
• Maharashtra : used in Pune, Nashik, and other growing cities
• Telangana and other states : similar land pooling models

The Town Planning Scheme is one of India's most elegant urban development tools it creates planned cities from raw land without the trauma of forced acquisition. Gujarat's success with TPS, particularly in Ahmedabad and Surat, has made it a model studied and replicated by urban planners across South and Southeast Asia.