Dharavi Redevelopment Project: Exempt developer from premium charges on fungible FSI, says State

Mumbai: The Maharashtra government wants to grant an exemption to the developer from the premium payment on fungible Floor Space Index (FSI) undertaking the Dharavi Redevelopment Project (DRP). Interestingly, although two renowned companies — Adani Group and Dubai-based Seclink Group have shown interest in this project, the state has so far not finalised the appointment of anyone till date.

To provide the exclusion to the developer, a notice has been issued now by state which mentions that in case of redevelopment under regulation 33(9) (A) and 33 (10) (A), the fungible compensatory area admissible on rehabilitation as well as on free sale component shall be granted without charging any premium. It has also called suggestion from people who are likely to be affected due to the proposed modification in the provision in the one month’s time starting from May 28.

According to the notice issued, it mentions that a meeting was held on December 19, 2018, wherein it was discussed to exempt the premium payable on FSI as the progress of the redevelopment of DRP is not encouraging.  The state government undertaking the redevelopment project has demarcated 240 hectares, as Dharavi notified area, so as to construct the integrated planned township costing Rs 26,000 crore.

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