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Rs 1000-cr bonanza for MMRDA in BKC
The authority has decided to increase the FSI here and also plans to sell extra built-up area
Tall buildings will soon dot the Bandra-Kurla Complex skyline. Giving in to demands by private and government organisations, and financial concerns, the Mumbai Metropolitan Region Development Authority (MMRDA) has now decided to increase the Floor-Space Index here from the current 1.5 to 3 for residential buildings and from 2.5 to 4 for commercial structures.
MMRDA also plans to sell extra built-up area. This means that builders who shell out the cash can build more floors on pre-existing structures.
MMRDA's Metropolitan Commissioner Rahul Asthana said the government body already 31 applicants lined up, requesting that they be allowed to build more floors on their existing plots.
Of these six have already paid the extra charge which has come up to Rs
120 crore and another 18 have paid 20 per cent of the charge, amounting to Rs 397 crore. Asthana added that through the sale of extra built-up area, the agency will earn almost Rs 1,000 crores in four years.
Many developers wanted to purchase the extra built up on their existing plots but wanted more time from the body to book their pleas. Now that the executive committee has approved the proposal they have time till March 31, 2012.
According to ready reckoner rates, developers currently have to pay Rs 93,300 per square metre for extra built-up areas. Last year, this rate was Rs 71,800.
The increased FSI is applicable only for G Block which is the hub of activity in BKC with offices of major firms such as the Regional Passport Office, ING Vaisya Bank, the Income Tax Department, Oriental Bank of Commerce and State Bank of India. Many of these firms also have their own residential quarters here.
With an FSI of 4, MMRDA now has commercial space amounting to 19,10,950.40 square metres up for sale in BKC. The residential space, with an FSI of 3, comes up to 2,38,744.89 square metre.
At present, the residential and commercial rates at BKC stand at Rs 40,000 per square feet. Which means that a 1,000 square ft flat costs a minimum of Rs 4 crore.
The MMRDA move, to increase FSI, will only benefit developers. Home buyers will not, in any way, get relief from this.
MMRDA GETS OUTSIDE HELP
REALISING THAT IF it sells all the land it has in its kitty, its infrastructure projects will be affected, the MMRDA has hired a private firm for assistance. Asthana said, "We are planning to make the sale process systematic so that while we earn the maximum from our lands, we don't run out of plots."
To this end, MMRDA is also trying to build city-level Infrastructure so that rates at BKC increase, thus earning the agency more money from fewer sales.
MMRDA's Metropolitan Commissioner Rahul Asthana said the government body already 31 applicants lined up, requesting that they be allowed to build more floors on their existing plots.
Of these six have already paid the extra charge which has come up to Rs
120 crore and another 18 have paid 20 per cent of the charge, amounting to Rs 397 crore. Asthana added that through the sale of extra built-up area, the agency will earn almost Rs 1,000 crores in four years.
Many developers wanted to purchase the extra built up on their existing plots but wanted more time from the body to book their pleas. Now that the executive committee has approved the proposal they have time till March 31, 2012.
According to ready reckoner rates, developers currently have to pay Rs 93,300 per square metre for extra built-up areas. Last year, this rate was Rs 71,800.
The increased FSI is applicable only for G Block which is the hub of activity in BKC with offices of major firms such as the Regional Passport Office, ING Vaisya Bank, the Income Tax Department, Oriental Bank of Commerce and State Bank of India. Many of these firms also have their own residential quarters here.
With an FSI of 4, MMRDA now has commercial space amounting to 19,10,950.40 square metres up for sale in BKC. The residential space, with an FSI of 3, comes up to 2,38,744.89 square metre.
At present, the residential and commercial rates at BKC stand at Rs 40,000 per square feet. Which means that a 1,000 square ft flat costs a minimum of Rs 4 crore.
The MMRDA move, to increase FSI, will only benefit developers. Home buyers will not, in any way, get relief from this.
MMRDA GETS OUTSIDE HELP
REALISING THAT IF it sells all the land it has in its kitty, its infrastructure projects will be affected, the MMRDA has hired a private firm for assistance. Asthana said, "We are planning to make the sale process systematic so that while we earn the maximum from our lands, we don't run out of plots."
To this end, MMRDA is also trying to build city-level Infrastructure so that rates at BKC increase, thus earning the agency more money from fewer sales.
The increased FSI is applicable only for G Block
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