MCHI calls for rationalization of FSI premium

The Maharashtra Chamber of Housing Industry, the leading association representing developers in Mumbai and MMR region has welcomed the new FSI guidelines proposed by Brihanmumbai Municipal Corporation Commissioner Subodh Kumar.
The proposals were consumer friendly and would lead to transparency in clearing building plans and speeden up the process which will ultimately reduce the scope for corruption as well as individual interpretation, MCHI President Paras Gundecha said.
Mr Gundecha however expressed reservation on the 100% premium proposed to be charged to developers for fire check areas, refuge floors, service floors, AC plant room and so on as these are mandatory spaces.
“This premium is too high. The state government and the municipal corporation should take a pragmatic and rational view,” he said and recalled that MCHI had already recommended a 40 per cent premium on FSI and enclosable balconies to be free of premium.
“Our earnest request to the authorities is to have a rethink on the issue and find a solution acceptable to all allowing for increase in revenue of the civic body without impacting the prices and burdening the consumer,” he said.
MCHI has also drawn the government’s attention to the long pending proposal on increasing the FSI in suburbs by .33. The government should take immediate steps to implement the proposal which would help in further augmenting the BMC revenues by at least Rs 5,000 crores a year, Mr Gundecha said.
 On the proposal to impose a levy on parking, MCHI suggested that BMC and the government should take a practical view since the parking needs would only increase in the times to come. The provisions for parking allowed under current DC regulations are inadequate. Developers should therefore be encouraged to earmark additional parking spaces keeping in mind the future needs of the particular housing society or building. Else, we will have a situation where increasing number of cars will block lanes and by-lanes, he said.
Mr Gundecha suggested setting up of a dedicated City Infrastructure Fund and all the collections from real estate developments, including the premium on .33 FSI should be used exclusively for up-gradation of infrastructure for Mumbai city, he said.