Mumbaikars Can Now Get Additional FSI  Of 0.5 By Paying A Premium

In an attempt to provide a major impetus to the development and reconstruction of buildings in Mumbai, the Devendra Fadnavis-led Government of Maharashtra has taken a decision to provide additional 0.5 Floor Space Index (FSI) in the state’s capital. The additional FSI will be made available on the payment of a premium which has been fixed at 60 per cent of the ready reckoner rates. This step by the government will see the base FSI availability go up significantly from 1.33 to 1.83 FSI.

Floor Space Index (FSI) is the ratio between the area of a covered floor (Built up Area) to the area of that plot (land) on which a building stands. A permitted FSI of 1.5 means one can build 3,000 square feet (sqft) covered area in a land of 2,000 sqft that can be either two floors of 1,500 sqft or three floors of 1,000 sqft subject to other municipal rules. The government’s move means developers will be able to use more FSI in Mumbai.

The government is currently executing several transformational projects to spruce up Mumbai's infrastructure including the Mumbai Trans-harbour Link, the coastal road and a slew of metro lines. The additional revenue generated from the sale of extra FSI will be used to partly fund some of these major infrastructure projects currently underway including the Bandra-Versova Sea Link and Dharavi redevelopment project. The Maharashtra State Road Development Corporation (MSRDC) will receive 25 per cent from the likely additional revenue to construct the Bandra-Versova Sea link and another 25 per cent will be used for the Dharavi Redevelopment Project. The remaining revenue will be shared between state government and the municipal corporation.

The government has also decided to link the additional FSI with the width of the road. The additional FSI is applicable only on plots fronting roads with a minimum width of nine metre or more.

The state urban development department has sought suggestions and objections from the public in the next one month, after which the Development Control Rules (DCR) will be modified for the purpose.

in 2016 the Municipal Corporation of Greater Mumbai (MCGM) made a radical proposal – In its draft Development Plan (for 2034), it said it would allow builders an FSI of eight in crowded areas if they handed over 10-20 per cent of their land for open spaces and roads. In other words, not only was more “land” being created, but more roads and infrastructure would also be created to handle the vertical growth of the city. It would have raised land supplies around six-fold (even after handing over some land for roads and infrastructure) and brought down property prices, perhaps by around 20-30 per cent in high-demand areas.

But the proposal crashed – for obvious reasons. Any proposal to increase the supply of land would impact the margins of vested interests who have built properties with FSI bought at a premium, and who also have huge stocks of over-priced property. The talk now is about revising the FSI downwards to five, or maybe even lower. One can be sure that the proposal won’t fly till almost all existing stock of overpriced property is sold. Builders don’t mind property prices falling once they have sold it. Property buyers will then carry the can.

Also Read: Maharashtra May Finally Be Getting Its Urban Policy Right By Allowing Higher FSIs In MMR