Mumbai, June 22: The BMC has proposed a one-time premium on the use of additional Floor Space Index (FSI) to accelerate the redevelopment of municipally owned tenanted properties.
The proposal, placed before the BMC's Improvements Committee, seeks to establish a uniform policy for utilising extra built-up area generated through rehabilitation incentives, incentive FSI and scheme amalgamation under the Development Control and Promotion Regulations (DCPR) 2034.
According to the proposal before the Improvements Committee, the BMC currently levies a premium only on fungible FSI in the sale component of redevelopment projects involving municipal tenanted properties.
However, the lack of a uniform policy for additional FSI generated through rehabilitation and incentive provisions has led to case-by-case approvals, creating uncertainty for developers, tenants and the civic administration.
Uniform Premium Policy Proposed
To address this, the BMC has proposed a standardised one-time premium policy. While similar premiums were permitted in select cases in 2017 and 2023 — at 5% of the Ready Reckoner value for residential use and 10% for non-residential use — those approvals were not part of a comprehensive policy and were applied only on a case-specific basis.
Under the proposed policy, a one-time premium will be charged on additional built-up area utilised in the redevelopment of municipal tenanted properties under various provisions of DCPR 2034. The premium has been fixed at 5% of the Ready Reckoner value for residential developments and 10% for non-residential projects.
Policy Covers Hybrid Redevelopment Schemes
The policy will also cover hybrid redevelopment schemes involving the amalgamation of municipal and private plots, transfer of rehabilitation obligations between municipal plots, and relocation of municipal tenanted properties onto private land.
In all such cases, the additional FSI generated will attract a one-time premium, and a provisional NOC will be issued only after the prescribed charges have been paid.
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"The policy will reduce uncertainty in tenant redevelopment projects by establishing uniform norms across different cases, helping to accelerate long-pending redevelopment schemes. We also expect to generate additional revenue through the premium charges, while bringing greater transparency and consistency to the redevelopment process," said a senior civic official.
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