The Brihanmumbai Municipal Corporation (BMC) is set to introduce a standard premium framework for additional Floor Space Index (FSI) in projects involving its tenanted properties, with the proposal now awaiting approval from the civic general body.
Cleared by the Improvement Committee in June, the proposal provides for a premium of 5% of the Ready Reckoner value for residential projects and 10% for non-residential developments. The move is expected to bring a common mechanism to redevelopment schemes that currently require project-specific consideration.
Common Rules For Additional FSI
The proposed framework will cover additional construction potential arising from rehabilitation incentives, incentive FSI and the amalgamation of schemes under DCPR 2034.
It will also apply to redevelopment models involving municipal and private land, transfer of rehabilitation obligations between civic properties and relocation of municipal tenants to privately owned plots.
At present, the BMC primarily charges premiums on fungible FSI forming part of the sale component, while additional FSI secured through rehabilitation and incentive provisions is dealt with on a case-by-case basis.
Premium Payment Before NOC
Under the proposed policy, developers will have to pay the applicable premium before the BMC issues a provisional no-objection certificate.
While similar premium provisions were approved for individual projects in 2017 and 2023, the civic body has not had a uniform policy covering different redevelopment arrangements.
A senior civic official said the framework could provide greater certainty for developers, help advance delayed projects and generate additional revenue for the BMC.
46,563 BMC Tenants In Civic Properties
The BMC has around 46,563 tenants across its properties, comprising about 42,060 residential and 4,505 non-residential occupants.
With many of these buildings estimated to be over five to six decades old, the proposed policy is aimed at facilitating their redevelopment while providing for the rehabilitation of existing occupants.
If cleared by the general body, the framework will set standard premium rates for additional FSI across BMC-owned properties.
Source: The Free Press Journal
