50 percent FSI premium concession for cluster redevelopment

Maharashtra state cabinet approves a 50% concession in FSI premium for cluster development schemes under Regulation 33 (9) of Development Control and Promotional regulations in Mumbai for one year, following demands from developers' associations. The move aims to address challenges in urban growth, inadequate infrastructure and ageing buildings by providing enhanced infrastructure in terms of wider roads, improved water supply, drainage systems and electrical works. The overall infra enhancement benefits not only the redeveloped buildings but also the surrounding areas.

Mumbai: The state cabinet on Wednesday cleared a proposal to grant a concession of 50 percent in FSI premium for cluster development. This will be applicable to all schemes undertaken under Regulation 33 (9) of the Development Control and Promotional regulations. The scheme will be applicable for one year.

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During the Covid pandemic, the then chief minister Uddhav Thackeray had appointed a committee under banker Deepak Parekh to help out the badly affected real estate sector. The committee recommended a slew of concessions. The Thackeray government accepted them and gave concessions to most redevelopment schemes for the stipulated period of one year.

The scheme, however, lapsed, and subsequently, builders’ organisations like MCHI-CREDAI, NAREDCO and PEATA began demanding concessions, especially for cluster development. Pushing the latter, additional chief secretary (urban development) Bhushan Gagrani said, “The cluster development scheme ensures optimum use of land, which is scarce in Mumbai. As far as urban planning is concerned, it is even more important and we have taken the decision in this context.”

Builder Niranjan Hiranandani, who is national vice-president of the National Real Estate Development Council, said that this was a positive move and would help redevelopment in a bigger way.

Developers pointed out that cluster development addresses the challenges of urban growth, inadequate infrastructure and ageing buildings by providing enhanced infrastructure in terms of wider roads, improved water supply, drainage systems and electrical works. “The overall infra enhancement benefits not only the redeveloped buildings but also the surrounding areas. It also allows modern amenities like elevators, dedicated parking spaces, landscaped gardens and recreational facilities to replace the older outdated structures, improving housing stock. Cluster development also optimises land use with taller buildings replacing smaller structures,” the CREDAI MCHI press note said.