The Centre has eased Transit-Oriented Development (TOD) norms and mandated 65 per cent affordable housing on developments along metro corridors to expand housing access and promote compact urban growth. The revised guidelines make affordable housing a mandatory component of projects in designated transit corridors and seek to align urban planning with public transport networks. The policy is intended to increase the supply of lower-cost homes close to transit nodes and to encourage higher density near rapid transit.

Under the new framework, local urban bodies and metropolitan authorities are expected to integrate the mandate into statutory plans and approvals while coordinating with metro operators and transport agencies. The changes are designed to provide incentives for developers to include affordable units rather than rely solely on market housing, and to reduce the need for long commutes by placing homes near stations. Officials have framed the measure as part of a broader effort to make cities more sustainable and accessible.

The requirement for 65 per cent affordable housing along metro corridors is likely to shift the economics of urban projects and to prompt revisions in land use permissions, floor area ratios and development charges where applicable. Planners may need to balance higher density with provisions for public amenities, open spaces and infrastructure capacity to ensure livable neighbourhoods. Municipalities are expected to set implementation details, eligibility criteria and monitoring mechanisms to track compliance.

Observers note that linking housing policy to transit investments can support climate and mobility objectives by reducing vehicle dependence and travel times, while expanding access to employment and services for lower-income households. The mandate is likely to influence future investments around transit nodes and to shape how cities prioritise mixed income development. Continued coordination among central, state and local agencies will be necessary for effective roll out and long term outcomes.