Redevelopment Projects To Take A Hit As Maha Govt Offers No FSI Benefits Under Development Plan 2034
It was in August that the Chief Minister Devendra Fadnavis-led Maharashtra government had announced plans to remove the cap on floor space index (FSI) for slum cluster redevelopment projects in Mumbai. According to media reports, the incentive is not a part of the notified Development Plan 2034. The move could prove to be a major set back for Maharashtra's redevelopment projects.
Under the new notification, the incentive FSI has been curtailed to the net plot. For instance, on a 10,000 square metre (sqm) plot, if a developer surrendered 5,000 sqm to the Brihanmumbai Municipal Corporation (BMC) for public amenities under the Accommodation Reserved (AR) policy of 2016, he would have received an incentive allowing him to construct over 40,400 sqm on the 5,000 sqm land that was his. However, with the new notifications announced on September 22, the construction space would be reduced to 16,685 sqm on the same 5,000 sqm portion held by him.
In another notification, the construction benefits offered to developers and landowners whose plots are reserved for widening a public road have also been withdrawn. The government’s Road TDR policy of November 2016 had offered additional construction rights in form of FSI to developers if they surrendered a portion of their plot for road-widening projects.
For instance, if a developer surrendered 1,000 sqm of a 10,000 sqm plot for the road widening project, he would have received an extra FSI for the 9,000 sqm developable plot. He could construct around 35,700 sqm on this plot. However, this number is now restricted only to 30,000 sqm.
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.
How does it impact Mumbai?
This new development, according to media reports, is going to dampen the sentiments of the developers who were all set to take up new redevelopment projects making these projects unviable.
The developers or landowners who have already surrendered their land for public amenities or for road widening projects will be hit as they will not be able to construct bigger and better homes for dwellers.
Many market experts suggest that this will also discourage developers and landowners to spare their plots for development of public amenities and widening of roads.