Mumbai’s redevelopment projects get FSI rule fillip

The properties can now be redeveloped with additional FSI by paying lesser premium on it.

The state government has decided to tweak its premium policy to offer respite to the redevelopment of the leasehold and Class II properties on its land. The properties can now be redeveloped with additional FSI by paying lesser premium on it.

To make redevelopment more flexible, the state cabinet on Tuesday decided to slash the rates. (HT File/ Representational Image)

The state government had framed the policy in April 2017, allowing additional FSI at charges of premium of 25% of the ready reckoner rates for the redevelopment of the leasehold and Class II properties on the land owned by the government. It was for the first time that the government introduced a policy for the premium on the additional FSI, consumed for the redevelopment. Months after it was framed, the housing societies on these plots approached the state government, saying the rate was too high.

To make redevelopment more flexible, the state cabinet on Tuesday decided to slash the rates. In Mumbai, the rates have been reduced to 10 per cent, while in rest of the state, the holder will have to pay 5 per cent as premium. Charitable establishments such as hospitals and educational institutions would have to pay 5 per cent premium in Mumbai and 2.5 per cent premium in rest of the state.

There are 1306 lease hold properties in Mumbai, which include 300 housing societies. About 3000 housing societies on Class II plots too, will benefit from the decision. The buildings being developed under cluster development scheme or as per the Slum Rehabilitation Authority (SRA) regulation will have to pay 25 per cent of premium as they already get higher FSI under incentive schemes.