Fresh FSI incentives to boost cluster development in Maharashtra
MUMBAI: On Wednesday the state government extended fresh floor space index incentives to developers to speed up the cluster development. Later on, it could include slum development.
The incentives were introduced by draft notifications proposing changes in development control regulations for old buildings. Besides that exact FSI gain isn’t specified yet.
The concessions were given after receiving views from MHADA, the BMC, and the Housing Department, said Bhushan Gagrani, Principal Secretary of the Urban Development department.
The Housing department provided fresh guidelines on November 5 to boost the completion of redevelopment projects in the city. The concessions for cluster development are in line with these guidelines. These guidelines have been made mandatory for developers. They 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 gave a vigilance committee with a minimum of three tenants, along with MHADA officials, to invigilate the construction every three months.
A new association, the South Mumbai Redevelopers Association (SOMURA), is formed during the lockdown. It had made a detailed representation to the government pointing out the hurdles in why old and dilapidated buildings couldn’t be redeveloped.
“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 back to 2.5 percent” said Bhushan Gagrani, Principal Secretary of the Urban Development department while explaining the proposed changes.
SOMURA president Rajesh Vardhan said the government has been very optimistic and has suggested some of their suggestions. “They have positively considered some of our demands” He added further. For example, we want MHADA to vacate tenants and give vacant possession to developers so that a handful of uncooperative tenants can’t hold up the redevelopment of the majority of tenants.”
A leading body of developers Deepak Goradia the president of CREDAIMCHI also said that it is “a very positive and revolutionary step” taken by the government. It would result in various small projects becoming viable.
