While BMC has estimated more than Rs10 lakh crore to come from premium on Floor Space Index (FSI) as per the Development Plan (DP)-2034, civic officials say the figures seem inflated as the new Development Control Regulations (DCR) are against redevelopment and, hence, such exponential revenue is not possible.
While BMC has estimated more than Rs10 lakh crore to come from premium on Floor Space Index (FSI) as per the Development Plan (DP)-2034, civic officials say the figures seem inflated as the new Development Control Regulations (DCR) are against redevelopment and, hence, such exponential revenue is not possible.
As per the new DCR, the beneficiaries of cessed buildings, Mhada buildings and slums will get lesser space in the redeveloped buildings. This condition will go against the state government's policy of affordable housing, feel experts.
Civic officials say if redevelopment of old buildings is choked, the projection made by the civic administration about the premium on FSI will certainly not come to pass. This will hamper the civic body's functioning in the long run. "Once Goods and Services Tax (GST) is implemented, the civic body is set to lose Rs15 crore cash income every day. In this situation, if policies are not conducive to attracting even premium on FSI, the administration will have to face severe cash crunch, resulting in compromising several services, which are provided for free today," says a senior civic official.
Samajwadi Party leader Rais Shaikh has written a letter to civic chief Sitaram Kunte, seeking explanation for the inflated figure. "This report mentions that the revenue is based on the exhaustion of full permissible FSI as calculated for the draft DP 2034. It is important to know the revenue accrual from redevelopment of cessed structures in this estimate of Rs10,86,853 crore. However, the project estimate out of redevelopment of old and dilapidated cessed buildings does not seem to be reflecting in the figure," Shaikh has written in his letter.
Most of these buildings have very high density of tenements, narrow access roads and zero open spaces. Also, they were not designed for seismic load. Though Regulation 33(7) had been there since 1991, it failed to encourage redevelopment until it was modified as DCR 33 (7), which came into force on January 25, 1999, offering incentive FSI to be used 'in situ' on the same plot.
Sunil Mantri, president of NAREDCO, welcomes the new DP-DCR as it will provide more housing on the limited available land in Mumbai. "Apart from the fact that a liberal FSI regime will create more housing stock in the city, it will also earn revenue for the civic body. This fund, in turn, can be channelised for the city's infrastructure," said Mantri.
However, Mantri expressed his fears about the development of cessed buildings, Mhada buildings and slums. He says there is confusion. Earlier, in redevelopment of old buildings, the beneficiaries got a carpet area of 300 sqft and in SRA schemes, 269 sqft. Now, the new DCR states that the developer has to give the same area inclusive of all components – loading of corridors, lifts, staircases, flowerbed area etc., which was otherwise FSI-free. This will mean reduced carpet area. Why will any tenant enter into such an agreement and why will any builder take up a project where he will not earn anything extra?," asks Mantri.
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