BMC to discuss raising FSI cap for redevelopment projects for a premium
If a notice of motion likely to be taken up during Tuesday’s civic general body meeting is accepted, Redevelopment of properties in suburban Mumbai will receive a major fillip.
There is a proposal for raising the cap on floor space index (FSI), which can be utilised for such projects by paying a premium amount to the civic body is proposed by Dilip Patel, BJP’s group leader in the BMC.
The extent of construction permissible on a plot can be indicated by FSI, a development tool. It is the ratio of built-up area to the total area of the plot.
If accepted, the notice of motion would decrease the overall cost of redevelopment projects recuperating their viability.
Redevelopment projects in the suburbs can avail a maximum permissible FSI of 2, under development control regulation. According t this developer can construct up to twice the size of the plot. Of this, an FSI of 1 originates from the plot and can be availed free of cost.
Based on ready reckoner rates
Based on ready reckoner rates, the developer can avail another 0.33 FSI by paying a premium to the BMC in addition to this. The remaining 0.67 FSI has to be purchased by developer from the floating FSI available in the open market in the form of transfer of development rights (TDR), which is created from plots booked for various public purposes and slum redevelopment projects.
In recent times, Spiralling of TDR prices has adversely impacted redevelopment projects. Patel’s notice of motion demands that the 0.33 FSI cap on premium FSI be raised to 0.67 FSI, which will consequently bring down the TDR share to 0.33. The real estate market will be positively affected by this move. Real estate cartel controls the TDR rates and keeps fluctuating irregularly.
Moreover, the TDR rates are considerably higher than premium charged for FSI by the BMC.The step to increase the premium FSI cap will eventually benefit the end buyer, Patel added.
Previously, Chief Minister Prithviraj Chavan has been suggested by the Maharashtra Chamber of Housing Industry (MCHI) to raise the premium FSI cap to rein in TDR prices. Sources near to Chavan alleged that the government is actively considering the move.
Source: The Indian Express
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