Rented & Old Buildings In Mumbai To Get Additional FSI For Redevelopment
Rented and old buildings in the Maximum City Mumbai that need immediate redevelopment will now be offered sops in the form of an additional floor-space index (FSI*). According to the recently notified rules of the city’s Development Plan 2034, the old housing societies and tenanted buildings with five or more rented apartments could get up to 70 per cent additional FSI of the total existing build-up area for redevelopment. Once redeveloped each apartment in these societies will have 12 per cent more carpet area, hence, a bigger living space.
According to new rules, in case of rented apartments, tenants, who have been residing before 1996 according to the Brihanmumbai Municipal Corporation (BMC) rules, are entitled to an apartment with a minimum 300 sq ft carpet area. Those looking for more space will need to ask the developer for the same. Such societies will not have to pay the premium for the staircase and lift lobbies at the time of redevelopment if they have paid the same when these were first constructed only if the developer accommodates the existing tenants again.
Meanwhile, the builder who undertakes the development of old housing societies, under the new rules, will be offered an incentive. He will be given a concession of 15 per cent when paying a premium for the additional used FSI to the BMC.
Developers & dwellers rejoice
This move will have a positive impact on many old buildings across the city that are in a dilapidated state and have been waiting for redevelopment for years now.
It is being termed as a win-win situation for all. While the developers could get good returns by additional apartments he is going build with an additional FSI, the existing tenants would get bigger homes. With additional FSI, more open spaces and better amenities could be offered to the dwellers.
BMC to suffer
However, the BMC will suffer under the new regulations as it will lose Rs 600 crore everywhere while it shares the FSI revenue. Earlier, the BMC received 66 per cent of the FSI premium collected, while 34 per cent went to the state. But, with new rules, this share has been brought to a 50:50 ratio. Also, the additional FSI premium was earlier shared between the BMC and the state. It will now be shared between four parties (25 per cent each) – the BMC, the state, the Maharashtra State Road Development Corporation (MSRDC) and Dharavi Redevelopment Project.
Note: FSI is the ratio of the area of floor to the area of the plot on which a building stands. For example, if FSI is 2, the ratio of the area of floor to the area of the plot would be 2. This means that the floor area of a building built on a 1,000 sqft land should not exceed 2,000 sqft.