State hikes floor space index to four for housing clusters
Move Could Revive Old Buildings Redevelopment Plans, Improve Infrastructure Facilities ………Girish Kuber MUMBAI
DEVELOPERS who have mega plans to construct multiple buildings for housing and not just a stand-alone structure can expect a bonanza. The state government has decided to hike the floor space index (FSI) which sets a cap on realty development to four for housing clusters.
The FSI is ratio of the size of the plot visà-vis the developable area. FSI at 4 means every 100 sq ft can have a developed area of 400 sq ft. At present, the FSI has been frozen at 1.33 in suburbs, and there was a move to raise it to 2.5 for housing clusters. Now, as things stand, it would go up to 4.
The state, in order to incentivise the development of old, dilapidated buildings in central Mumbai, has now decided to grant four FSI for all integrated development projects. The state government has zeroed in on Mumbais some of the very crowded areas to test its new approach. Congested areas around Mohammed Ali Road, Chira Bazaar, old parts of Girgaum and Masjid would be the first beneficiaries of the states generous FSI.
The idea is to have a holistic planning for the region, unlike the existing method where developers plan single, small projects without having to provide for adequate infrastructure for these areas, an official from the urban development ministry told ET. The government has already undertaken a process to modify development control rules (DCR) to make these changes effective. The notification in this regard can be expected soon, he said. The development should be in a planned manner. More FSI for clusters is a step in that direction. It was the need of the hour, said Vinod Sampat, president of the Co-operative Societies Residents, Users and Welfare Association.
One of the reasons why the government weighed this option is the not-soenthusiastic response it received for redevelopment of old buildings. Mumbai has around 16,000 old and dilapidated buildings, some of which are as old as 70 years. But the state-run Maharashtra Housing and Area Development Authority (MHADA) has redeveloped just about 450 buildings so far. More or less the same number of buildings 500, the ballpark estimate have so far been redeveloped by private developers.
Increasing FSI will make redevelopment attractive, an official said. With a larger area available for redevelopment, this new approach could provide for better facilities, including wider roads, gardens and playgrounds. The government expects it to be win-win situation for all stakeholders.
Builders will get more space to develop that will offer more saleable space. For land owners, it will fetch more returns and for tenants this can improve living conditions, another official added. Developers getting into cluster redevelopment projects will have to pay an infrastructure development charge to the BMC for off-site infrastructure, including additional amenities. Even as the developer shall be responsible for on-site infrastructure, he will have to pay for offsite infrastructure like schools, roads, water supply and storm water drains for clusters.
HOME TRUTHS
HOME TRUTHS
Mumbai has around 16,000 old and dilapidated buildings, some of which are as old as 70 years State-run MHADA has redeveloped just about 450 buildings so far More or less the same number of buildings have so far been redeveloped by private players