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Thursday, April 25, 2013

FSI lowered as rental housing scheme fails

Mumbai: The government has lowered the floor space index (FSI) for a mass housing scheme being implemented in the Mumbai metropolitan region (MMR). Chief minister Prithviraj Chavan revised the policy as the rental housing scheme 

failed to take off. 
    Under the new model, FSI available for development has been lowered from four to three. Chavan took the decision based 
on the report of a high-level government panel, which had found that a higher FSI made the scheme unviable in certain pockets. 
    Interestingly, even builders had opposed a uniform FSI of four provided under the scheme. 
    Developers and MMRDA will share the FSI in the 2:1 ratio under the new model, senior officials said. 
    Acknowledging that the rental housing plan was flawed, the government altered the scheme's objective. Chavan has decided to replace the rental housing component with affordable houses. 
    In its report submitted earlier this year, the panel had cited practical difficulties in maintenance of rental houses. 
    The government also decided to increase the size of affordable housing units generated under the scheme from 160 sq ft to 320 sq ft. 
    The state government also decided to restrict the scheme to areas governed by civic bodies and special planning agencies like MMRDA. 
    With such a rider not existing in the earlier model, most developers usedFSI incentives to plan high-rise projects in far-flung areas. "The prime objective of the scheme was to decongest parts of Mumbai. Construction in farflung areas defeated the purpose," an official said. The rental housing scheme was former chief secretary Ratnakar Gaikwad's 'pet scheme'. 

State In A Bind 
he state is caught in a bind over the fate of 54-odd rental housing projects approved under the old regime. Sources said the 18 projects where construction was underway will continue. A senior state official said developers would be told to amend plans wherever possible. The ones in the planning stage are likely to be scrapped. TNN



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