Fresh FSI incentives to boost cluster development in Maharashtra
MUMBAI: The state government extended fresh floor space index incentives to developers. They took this step to boost cluster development. This plan later can include slum development.
The incentives have been introduced by draft notifications introducing changes in development control regulations for old and dilapidated buildings. The exact FSI gain has not been specified yet. Bhushan Gagrani, Principal Secretary of the Urban Development department, said that concessions have been offered after getting views from MHADA, the BMC, and the Housing department.
The Housing Department had given new guidelines on November 5 to boost the completion of redevelopment projects. The concession for cluster development is ready with some guidelines. These guidelines are mandatory for developers, which include the opening of an escrow account and depositing the advance rent of 11 months to get the Commencement Certificate from the BMC. The Housing Department also offered a vigilance committee with at least three tenants, along with MHADA officials, to monitor the construction in three months.
A new association, the South Mumbai Redevelopers Association (SOMURA), was formed during the lockdown period. It has provided a detailed representation to the government pointing out the problems in why old and dilapidated buildings could not redevelop.
Architect Milind Changnani, a specialist in redevelopment explained the proposed changes and said “In 1991 development control regulations, the premium for open space deficiency in sale buildings was 2.5 percent, which was increased 10-fold in DCPR 2034. In 500 sqm plots, this deficiency premium, which was Rs 40 lakh earlier, became Rs 4 crore. Due to this increase, the viability of the project went for a toss. This has now reverted to 2.5 percent.”
SOMURA president Rajesh Vardhan stated that the government has been optimistic and has incorporated some of their suggestions. He also added “They have positively considered some of our demands. For example, we want MHADA to vacate tenants and give vacant possession to developers so that a handful of uncooperative tenants don’t hold up the redevelopment of the majority of tenants.”
A leading body of developers and president of CREDAIMCHI Deepak Goradia said this is “a very positive and revolutionary step” taken by the government, which would result in many small projects becoming viable.
