Govt announces FSI at 50pc and 60pc for residential, commercial propertiespune Updated: Jul 27, 2017 14:13 IST
As per the rates announced by the state government, there would be 50% charge of ready reckoner for residential, industrial and mix commercial properties. At the same time, there would be a 60% charge of premium Floor Space Index for commercial properties like malls, commercial complex or shopping complex. (HT REPRESENTATIVE PHOTO)
It is a win-win situation for builders and citizens as the state government has introduced premium Floor Space Index (FSI) rates on Tuesday. The builders can now construct an extra floor space against the payment of a premium and experts hope that it will help bust the TDR (Transfer Development Right) ring and bring relief to residents as well as it will bring down the housing cost.
As per the rates announced by the state government, there would be 50% charge of ready reckoner for residential, industrial and mix commercial properties. At the same time, there would be a 60% charge of premium FSI for commercial properties like malls, commercial complex or shopping complex.
The city engineer office confirmed that the government had announced the premium FSI rates. Sources from the municipal office said that this decision would help increase the PMC revenue as many builders were waiting for this decision and they are ready to purchase it.
Confederation of Real Estate Developer’s Association of India (CREDAI) president Satish Magar said, “It is a good decision for the real estate sector in the city and will help to complete projects. This decision will also help bring the TDR prices down and people will prefer premium FSI rather than TDR.”
The municipal officers said that though the Pune Municipal Corporation had put the proposal for premium FSI, the state government had the right to decide the rates for the premium FSI. The PMC would need to share 50% of the total collection through premium FSI to the state government. The formula has not been decided yet whether it will be submitted project wise or on a monthly basis.
TDR rates likely to come down due to premium FSI
As the state government has approved the rates for premium FSI in the city, it would help to bring down TDR prices in the city, claimed experts. Developers would prefer to purchase premium FSI which they will get directly from the municipal corporation at the time of approving the project. The price of premium FSI would be less than TDR.