State govt offers double FSI to power urbanization around city

Real Estate Prices May Ease In City And Thane

    More urban setups like Navi Mumbai are expected to spring up from the rural parts and the small towns around the city over the next few decades, powered by a state government move this week to extend to non-corporation areas the same construction potential as available in big cities. 
    The move to apply the development control regulations (DCR) beyond places with a municipal corporation will bring benefits such as double FSI to an area that is collectively three times that of the city in the Mumbai Metropolitan Region, while also promising to bring down the real estate demand and overheated prices in highly urbanized places such as the city, Thane, Mira-Bhayander and Navi Mumbai. 
    The move will fast-track urbanization in the metropolitan region as it will bring in a large stock of cheaper land and housing options together with the promise of better infrastructure. Officials say such development will take the load off the city and Thane. 
    The cheaper land stock is in the jurisdiction of nine municipal councils and nearly 200 nagar panchayats in around 1,000 villages in the metropolitan region. 
    A major fallout of the government decision is the doubling of FSI in these areas from .75 to 1.5 and the offer of various FSI incentives for essential urban needs like housing, institutions, guest houses, IT parks, semigovernment offices, public undertakings, biotech parks, religious buildings, police buildings, public libraries, Mhada schemes and redevelopment projects. 
    The government decision came with chief minister Prithviraj Chavan approving the government resolution named 'Standardized Development Control and Promotion Regulations for Regional Plan Areas in State' four days ago. 
    The decision will be applicable to municipal councils and panchayats across the state. 
    Town planning expert V K Phatak said only increased FSI and FSI incentives would not be enough to attract development and developers, but amenities will also be needed. 
    "Potential and demand will go up only if the government brings in better transportation facilities and civic services in these areas to make them future magnets," he said. "Mere FSI hike can't create demand and will only be able to take care of the supply side and pricing in case of high demand." 
    Other experts said that with the state government move, under-utilization of land in the metropolitan region would go away as available land stock would be optimally used. They said it would slow down the pace of conversion of agricultural land into urban land in these areas as the developable land would be enough to cater to the demand because of the new FSI regime. 
    Officials close to the development said the move also offered FSI incentives against road widening. 
    "The more the width of the road to be widened, the more will be the FSI against the acquired land and road space which can then be utilized for housing and commercial development," an official said. 
    A source in Mantralay said those with houses beside wider roads will get more FSI. 
    "Now that the FSI of the road will be used for housing, the owners will get up to 90% FSI for construction instead of the existing 75% FSI," the source said. "The road width criteria has also been enhanced so that residents get more FSI and better TDR [transfer of development rights] against road widening to make urbanization more attractive for even the residents." 
    TDR is the making available of a certain amount of additional built-up area in lieu of the area relinquished or surrendered by the owner of the land to the government for public projects. 
    Besides taking away height restrictions in building construction, a fungible FSI of .20% has been granted for the buildings to avoid illegalities in constructing balconies, galleries and corridors in the new townships. 
    "In these areas developers will be able to develop terraces on alternate floors in the housing schemes to make the housing more attractive for buyers," a source said. "The land owner will be able to develop the plots reserved by the state for schools and hospitals instead of the state taking these for the same purpose."