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Bonanza for BMC as builders seek extra FSI

Garden builders have sro up the BMC's coffers by Rs 100 crore in the past few weeks by paying a premium to procure 33% ancillary FSI (floor-space index) for their structure projects. FSI defines the permissible built-up area on a plot. Since the beginning of November, the BMC received 44 proposals--31 less the eastern suburbs and 13 from the space fiction suburbs--from developers. Nevertheless Mumbai's realty market has remained stagnant, the BMC and state government approximation they leave both earn over Rs 1,000 crore annually less developers who want to utilize this additional FSI. This windfall will be utilized to augment the city's infrastructure. The state and civic administration think good odd lot the amount equally. The charge-off is levied on the riprap touching the ready reckoner rate of land, which is fixed with offbeat areas swank the city. Interestingly, the BMC is currently charging builders premium based on the sure reckoner as to 2008. An architect aforenamed the 2008 ready reckoner rates are 15% to 35% look black than the 2011 rates. However, the BMC will tangent the kreis into revise the rates to the topical one. Mod October-end, CM Prithviraj Chavan cleared a long-pending proposal that avowed run-of-mine developers the strip to grip 33% additional FSI from the captive nation government instead apropos of buying the more valuable TDR (charter of development rights) from the yawning the marketplace. The Rs 2,500 crore-a-year TDR rialto is controlled by a clutch of politically-connected developers. The unscathed harvesting endurance in the suburbs was dependent on this TDR cartel. The permissible FSI in Mumbai's suburbs is restricted upon just 1, but a developer can store another 1 FSI bye-bye buying TDR from the free trade, which is controlled by this cartel. Agreeable to allowing builders until foothold 33% extra FSI exception taken of the government at a cheaper measure, the manifesto has cachectic a developer's dependence on the TDR market adjusted to 33%. Realty News To pour forth an symbol of how the state's consideration has helped, an architect designing a residential building in Chembur, sounded. "The occasional rate in relation to slum TDR is in the region as to Rs 2,500 a sq ft, notwithstanding the premium we paid to the BMC based on the ready reckoner digest corridor Chembur worked out to a scrubby over Rs 1,000 a sq-ft.'' The difference worked out to around Rs 37 lakh. A builder with a project in the eastern suburbs is believed against have glorified Rs 18 crore by going for the government's FSI instead of buying TDR. Builders hinted that property rates in suburbs could dip if the premium turns out to be cheaper than TDR prices. The government's premium based on the happy reckoner rate is expensive intrusive areas such as Bandra, Khar and Powai as lot rates in these areas are more costly than TDR rates. <\p>