Maharashtra Government to Increase FSI

for Cluster Redevelopment

In order to boost cluster
redevelopment in Mumbai,
especially in the island city, the
Maharashtra government is
planning to provide higher foor
space index (FSI). Despite its
introduction ve years ago, the
redevelopment model hasn!t
received much "avourable response
"rom developers. #he ne$ FSI, along
$ith the ne$ proposed cluster redevelopment policy are expected to give a
llip to cluster redevelopment inMumbai.
Earlier challenges
#he cluster redevelopment model $as introduced to redevelop cessed and
dilapidated buildings in South Mumbaion a large scale. %o$ever, the model
has been "acing certain challenges in terms o" ta&e up by the developers and
land lords. Some o" the challenges include
'. Delays in government approvals "or redevelopment plans "rom developers.
#his $ould result in increased pro(ect costs. #here $ere only "our cluster
redevelopment pro(ects that $ere approved during the entire duration.
). Developers did not nd the incentives attractive enough to ta&e up
redevelopment pro(ects. *nly the +vighna ,ar& pro(ect in -o$er ,arel is
nearing completion out o" the "our approved pro(ects due to this lac& o"
interest.
.. +part "rom nancing the redevelopment pro(ects, the developers had to
also obtain a consent "rom '// per cent o" the o$ners o" the buildings as
$ell as provide them $ith intermediate accommodation. *btaining the
consent "rom a large number o" occupants and resettling them has been a
ma(or challenge to most developers.
Proposed policy and FSI
Due to the lo$ ta&e up o" cluster redevelopment, the state government has
already proposed a ne$ policy. #he ne$ policy $ill apply to all buildings older
than ./ years and $ill be extended to Mumbai suburbs as $ell. #here are "e$
more policy changes as $ell0
'. #he minimum area re1uired "or redevelopment in the island city $ill be
2.,/34 s1. "t. and the minimum area in the suburbs $ill be ',/5,42/ s1. "t.
#he pro(ect $ill be extended to buildings constructed on 2/63/ acre land
parcels.
). Developers no$ need to obtain consent "rom only 5/ per cent o" o$ners.
#he government $ill help ac1uire the rest o" the land once the developers
have obtained this consent. *ccupants $ho are rehabilitated $ill obtain a
carpet area e1uivalent to that o" their old building.
.. #he ne$ policy also proposes a minimum FSI o" 2 "or cluster
redevelopment. #his may go up to even 4, depending on the si7e o" the plot.
#he current FSI "or cluster redevelopment is (ust ).5, especially in north
Mumbai, $hich is less protable "or the builders.
#he ne$ FSI $ill attract more developers to ta&e up cluster redevelopment
pro(ects. #he ne$ policy is also expected to redevelop about '4,///
buildings that are termed dangerous in Mumbai.
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