Maharashtra Government has issued notification to reduce premium for fungible floor space index (FSI) to 40% from 60% or ready recknor rate for industry for two years.
Fungible FSI is additional floor area developed by builder over and above FSI limit set by the state government. In Greater Mumbai only green industrial projects meaning non-polluting and non-hazardous ones are allowed.
The government has issued notification on Friday in a bid to attract more and more investments post COVID 19 in the city and rest of Maharashtra.
Earlier, developers often converted land use from industrial to commercial to avoid paying higher premium. However, commercial projects are expected to give amenity space which is not required for the industry.
Experts said although the conversion to commercial was allowed it was at cost and may not work in most cases in Greater Mumbai.