CM cancels old parking lot FSI plan

A controversial public parking policy, introduced by the state in 2008 and seen as being too developer-friendly, was cancelled by Chief Minister Prithviraj Chavan on Wednesday. HT reports.

A controversial public parking policy, introduced by the state in 2008 and seen as being too developer-friendly, was cancelled by Chief Minister Prithviraj Chavan on Wednesday.

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Chavan, instead, gave the go-ahead to a new policy that allows private developers to build public parking lots but restricts vertical development and ensures authorities get a share in the revenue generated.

The earlier policy, introduced in 2008 by the then chief minister Vilasrao Deshmukh, offered 50% incentive FSI to developers for building public parking lots, but did not put a cap on the height of these lots.

This scheme was implemented largely in prime areas like Lower Parel, where developers used it to build swanky residential and commercial towers and earn crores of rupees.

The new parking norms restrict the height of parking lots to ground plus four storeys and two basements.

The policy also calls for a premium to be paid by the developer (40% of his unearned revenue) to state authorities, so that the government has some share in the huge profits the developer will eventually make.

The premium will be worked out on the basis of the ready reckoner rate for the additional incentive built-up area minus the construction cost borne by the builder. Estimates by the civic corporation say authorities could earn up to Rs 1,000 crore annually from this.