HomeNewsBusinessStocksRealty stocks rise; Maha govt ups premium on additional FSI

Realty stocks rise; Maha govt ups premium on additional FSI

It is also under consideration of the government to enhance the rate of premium on grant on all kinds of FSI. These gains in FSI will benefit individuals, but the government does not get benefit of revenue increase in the same proportion.

March 20, 2015 / 13:01 IST
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Moneycontrol Bureau

Shares of Maharashtra-based realty companies are on buyers’ radar after the floor space index (FSI) booster in the state. Maharashtra Finance Minister Sudhir Mungantiwar, presenting the state Budget, announced enhancing premium on additional FSI which will result in substantial revenue gains.

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FSI is the ratio of a building's total floor area to the size of the piece of land upon which it is built.

The minister said the government has promised to enhance the FSI limit from 0.33 to 0.60 and increase the rate of premium in Brihanmumbai Municipal Corporation limit. It is also under consideration of the government to enhance the rate of premium on grant on all kinds of FSI. These gains in FSI will benefit individuals, but the government does not get benefit of revenue increase in the same proportion.