While TP scheme has been institutionalized for decades now, it does not have traction that it deserves. Some of the reasons are mentioned below.
In India, land is a state subject. Executing TP scheme requires enactment of a state-level town and country planning ac to support the scheme. But unfortunately, many states still have not endorsed this act which thus limits the use of TP scheme to a few states.
Since this tool is complex, it requires trained planners and officials for efficient and timely execution. The local development authorities are responsible for implementing the scheme and they usually don’t have sufficient skilled resources to handle the process.
The financial process of the scheme requires necessary investments in development before the actual realization of payback from betterment charges or sale of reserve lands. This becomes an issue for the development authorities which already experience a fund deficit.