The state government gave the city’s vertical development another push on Tuesday.
Chief Minister Ashok Chavan announced that floor space index (FSI) in the suburbs will be increased to 1.33 from 1 despite the Bombay High Court’s stay on the policy decision taken some time ago. Chavan also said all buildings in the city constructed before 1969 will be given higher FSI for redevelopment. Buildings constructed before 1940 were given this incentive so far.
Chavan made these announcements in the Legislative Assembly on Tuesday. The FSI of a plot indicates how high a building constructed on that plot can be.
“We will amend the Mumbai Region Town Planning (MRTP) Act that governs the city’s development,” Chavan told journalists later in the evening. “We may even promulgate an ordinance to this effect because the next session of the legislature is four months away.” Chavan said increasing FSI in the suburbs will ensure a reduction in prices of transfer development rights (TDR) and create more housing.
The state’s earlier decision on FSI was stayed by the high court, which said the state cannot allow more FSI by charging a premium. The government will now amend the MRTP Act to make such a provision. Hindustan Times had reported this in June.
The TDR earned in south Mumbai should be used in the north. Bankers of TDR exploit builders by charging exorbitant rates causing realty prices in the suburbs to rise. With the state’s decision to grant higher FSI to buildings constructed before 1969 old buildings in suburbs will get FSI approved for redevelopment of cessed and non-cessed buildings in the island city.
There are at least 1,000 pre 1969 cessed buildings in the island city. These buildings can avail FSI of 3 when they go in for redevelopment of an individual building and of 4 in case of cluster redevelopment.
Old buildings were classified under three categories but now there will be only one group for old constructions that need redevelopment.
The state will have to amend Development Control Rule 33/7 to bring all these buildings under one group.
There are 16,000 odd cessed buildings in the island city. This is apart from 3,000 buildings that have undergone redevelopment.