FSI For Redevelopment Projects To Be Increased
With plans of increasing redevelopment of old dilapidated buildings in Mumbai, the stakes of redevelopment are high. With increasing stakes, the Maharashtra state government has decided to hike the incentive FSI available for redevelopment projects from 2.5 to 3.
With the recent collapses of buildings in Mumbai and Thane, about 5,000 old and dilapidated buildings in MHADA colonies are set to be redeveloped. The government intends to attract more private developers to take up redevelopment projects. The Maharashtra chief minister has granted permission for modifying the development control regulations (DCR) in this regard to the state urban development department. The new notification confirming the norm changes will be announced in few days.
New changes in norms
The biggest change in the current norms would be the incentive floor space index (FSI) which will be increased from 2.5 to 3. FSI defines how much construction is permissible on a given plot. It gives the ratio of the built-up area to the plot area.
Apart from this major change, the government will also be offering bigger rehabilitation areas for tenants. It will link the redeveloper’s incentives and MHADA’s share to the market value of the plot. The tenants in individual societies will be entitled 35% additional area after redevelopment while the additional area will be increased by another 15%-45% if they participate in integrated development schemes involving bigger plots. The minimum plot size must be over 1 hectare (1.08 lakh sq.ft) in order to avail this additional benefit.
About 56 of the total 104 MHADA colonies are located on large plots. The idea for encouraging a cluster redevelopment is for better planning and development according to MHADA officials. To avoid any kind of fraudulent practices by the builders who attempt to lure tenants, the government has imposed a cap on the maximum rehabilitation area that is to be offered to the tenants. This will be 861 sq.ft and will exclude the balcony portions.
Incentives
MHADA’s share and the developer’s incentive in the surplus built-up area will be connected with the market rates. The developers will be given an incentive FSI in the range of 40%-70% while taking into account ready reckoners rates in Mumbai and construction costs. For new low-cost schemes that MHADA takes up, the FSI will be 3. The society’s share in the area remaining after rehabilitation and incentive component will be 30%-45%. The remaining built-up area will be retained by MHADA.
FSI for redevelopment projects
The state government of Maharashtra has steadily increased the incentive FSI for redevelopment projects over years. The initial FSI was 1.33 in the island city of Mumbai in 2011 which was later increased to 2.5 within six months for non-cessed buildings. For ‘A’ category cessed buildings that were built before 1940, the total FSI was 2.5 or additional 50% (whichever was higher). The new notification will give an incentive FSI of 3.
