‘City’s economic growth hit by lack of affordable housing’ | mumbai | Hindustan Times
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‘City’s economic growth hit by lack of affordable housing’

Chief minister Prithviraj Chavan believes granting extra floor square index (FSI) to old buildings will boost the city’s economic growth.

mumbai Updated: May 25, 2011 02:20 IST
HT Correspondent

Chief minister Prithviraj Chavan believes granting extra floor square index (FSI) to old buildings will boost the city’s economic growth.

“Lack of good and affordable housing has already affected the city’s economic growth. Redevelopment of old buildings will create affordable houses,” Chavan told the media at Gandhi Bhavan on Tuesday.

Sources close to the CM said his statement stemmed from the fact that the city’s workforce spent most of its time and energy travelling between their respective workplaces and homes.

“Hard efforts associated with tedious travel do adversely affect the output of employees and the overall economic output,” said a senior bureaucrat who works with the CM's office.

An FSI of 3 is expected to help clear 400 redevelopment proposals in the Mumbai district where 16,000 cessed buildings are awaiting demolition. Redevelopment of all these buildings will create a housing stock of 5,000. Residents will get homes of between 300 and 753 sqft.

Chavan, however, denied that granting of the extra FSI was a political decision taken with an eye on the civic polls. “Such criticism is unwarranted. The administration will not be able to do any work if such attitude persists,” he said.

The bureaucrat said the decision, if applied to 33,000 non-cessed buildings, would create even more housing stock. “This will help bring down the real estate rates in the city,” he said.