Maharashtra Government to Increase FSI for Cluster Redevelopment
In order to boost cluster redevelopment in Mumbai, especially in the island city, the Maharashtra government is planning to provide higher floor space index (FSI). Despite its introduction five years ago, the redevelopment model hasn’t received much favourable response from developers. The new FSI, along with the new proposed cluster redevelopment policy are expected to give a fillip to cluster redevelopment in Mumbai.
Earlier challenges
The cluster redevelopment model was introduced to redevelop cessed and dilapidated buildings in South Mumbai on a large scale. However, the model has been facing certain challenges in terms of take up by the developers and land lords. Some of the challenges include
1. Delays in government approvals for redevelopment plans from developers. This would result in increased project costs. There were only four cluster redevelopment projects that were approved during the entire duration.
2. Developers did not find the incentives attractive enough to take up redevelopment projects. Only the Avighna Park project in Lower Parel is nearing completion out of the four approved projects due to this lack of interest.
3. Apart from financing the redevelopment projects, the developers had to also obtain a consent from 100 per cent of the owners of the buildings as well as provide them with intermediate accommodation. Obtaining the consent from a large number of occupants and resettling them has been a major challenge to most developers.
Proposed policy and FSI
Due to the low take up of cluster redevelopment, the state government has already proposed a new policy. The new policy will apply to all buildings older than 30 years and will be extended to Mumbai suburbs as well. There are few more policy changes as well:
1. The minimum area required for redevelopment in the island city will be 43,056 sq. ft. and the minimum area in the suburbs will be 1,07,640 sq. ft. The project will be extended to buildings constructed on 40-50 acre land parcels.
2. Developers now need to obtain consent from only 70 per cent of owners. The government will help acquire the rest of the land once the developers have obtained this consent. Occupants who are rehabilitated will obtain a carpet area equivalent to that of their old building.
3. The new policy also proposes a minimum FSI of 4 for cluster redevelopment. This may go up to even 6, depending on the size of the plot. The current FSI for cluster redevelopment is just 2.7, especially in north Mumbai, which is less profitable for the builders.
The new FSI will attract more developers to take up cluster redevelopment projects. The new policy is also expected to redevelop about 16,000 buildings that are termed dangerous in Mumbai.
