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Fresh FSI incentives to boost cluster development

State extends new concessions through draft notifications proposing changes in development control regulations.

The state government on Wednesday extended fresh floor space index incentives to developers to boost cluster development, which later could also include slum development. The incentives have been introduced through draft notifications proposing changes in development control regulations for old and dilapidated buildings. However, the exact FSI gain has not been specified yet.

Bhushan Gagrani, Principal Secretary of the Urban Development department, said concessions have been given after receiving views from MHADA, the BMC and the Housing department.

The Housing department had issued new guidelines on November 5 to speed up the completion of redevelopment projects in the city. The concessions for cluster development are in line with these guidelines, which have also been made mandatory for developers. These guidelines include opening of an escrow account and depositing the advance rent of 11 months to obtain the Commencement Certificate from the BMC. The Housing department also proposed a vigilance committee with minimum three tenants, along with MHADA officials, to monitor the construction every three months.

A new association, the South Mumbai Redevelopers Association (SOMURA), established during the lockdown, had made a detailed representation to the government pointing out the hurdles in why old and dilapidated buildings have not been able to redevelop.

Explaining the proposed changes, architect Milind Changani, a specialist in redevelopment, said, “In 1991 development control regulations, the premium for open space deficiency in sale buildings was 2.5 per cent, which was increased 10-fold in DCPR 2034. In 500 sqm plots, this deficiency premium, which was Rs 40 lakh earlier, became Rs 4 crore. Due to this increase, the viability of the project went for a toss. This has now reverted back to 2.5 per cent.”

SOMURA president Rajesh Vardhan said the government has been very positive and has incorporated some of their suggestions. He said, “They have positively considered some of our demands. For example, we want MHADA to vacate tenants and give vacant possession to developers so that a handful of uncooperative tenants don’t hold up the redevelopment of the majority of tenants.”

Deepak Goradia, president of CREDAIMCHI, a leading body of developers, said this is “a very positive and revolutionary step” taken by the government, which would result in many small projects becoming viable.


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