Mumbai suburbs to get 0.33 FSI more on a premium: Chavan

Maharashtra Chief Minister Prithviraj Chavan today said state government has decided to offer an additional 0.33 FSI (floor space index) to real estate developers in the suburbs for a premium.

"We have decided to provide additional 0.33 FSI to the developers in the suburbs on payment of a premium. This decision will not only enable the state to generate additional revenue by granting extra FSI, but will also help the developers to provide better housing stock," Chavan told reporters on the sidelines of an international investor summit here.

Currently, the government has allowed a global FSI of 1 in the suburbs while in the island city it is 1.33. The developers are therefore buying transfer of development rights (TDRs) from the market to increase the FSI to as high as 2.

If the new FSI norms are implemented then the suburbs will also get the FSI of 1.33 which will be on par with the island city.

Floor Space Index (FSI) is the ratio between the built up area allowed and plot area available.

"It has been observed that developers are buying TDRs from the market to increase the FSI levels and they are also reaping the benefits of the same. But now we have decided to offer additional FSI that will enable us to generate revenue by charging this levy and use it for augmenting infrastructure in the state," he said.

Asserting that the move will also ensure reduction in property prices as more housing units will be available, Chavan said, "the industry has been demanding extra FSI saying buying them from the market is expensive. But offering additional FSI will not only enable developers to create extra housing stock but the buyers will also benefit from lower property cost."