Mumbai: BMC Proposes 5 Per Cent Premium On Additional FSI For Residential Redevelopment Of Civic Tenanted Properties
The BMC has proposed a one-time premium on additional FSI to accelerate redevelopment of municipally owned tenanted properties. The framework proposes a 5% premium of Ready Reckoner value for residential projects and 10% for non-residential use. The policy covers around 46,563 civic tenants and awaits final approval from the general body.
The proposed FSI premium policy aims to accelerate redevelopment and tenant rehabilitation across BMC-owned properties in Mumbai | AI Generated File Image
Mumbai, September 22, 2026: The BMC has proposed a one-time premium on additional Floor Space Index (FSI) to fast-track the redevelopment of municipally owned tenanted properties. The proposal, approved by the Improvement Committee in June, is expected to come before the civic general body this week for final approval.
Uniform Policy For Additional FSI
The policy aims to introduce uniform norms for additional built-up potential generated through rehabilitation incentives, incentive FSI and scheme amalgamation under Development Control and Promotion Regulations (DCPR) 2034.
At present, the BMC charges a premium only on fungible FSI in the sale component, while additional FSI generated through rehabilitation and incentive provisions is approved on a case-by-case basis.
Under the proposed framework, a one-time premium of 5% of the Ready Reckoner value will be levied for residential development and 10% for non-residential use.
The policy will also cover hybrid schemes involving municipal and private plots, transfer of rehabilitation obligations between municipal properties, and relocation of municipal tenants to private land.
Premium To Support Redevelopment
A provisional no-objection certificate will be issued only after payment of the applicable premium. Similar premiums were approved in select cases in 2017 and 2023, but without a comprehensive policy.
A senior civic official said the uniform framework would reduce uncertainty, facilitate long-pending redevelopment projects and generate additional revenue for the BMC.
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46,563 Tenants On BMC Properties
The BMC has around 46,563 tenants on its properties, including 42,060 residential and 4,505 non-residential occupants. Most of the structures are over 50–60 years old and are being taken up for redevelopment to facilitate tenant rehabilitation.
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