No tax cuts, FSI sops for eco-friendly bldgs Govt To Soon Release Code For Green Structures

Mumbai: After dangling a carrot in front of developers and citizens to promote environment-friendly buildings, the state government seems to have yanked it away for now.      For the last few years, the state had been hinting at providing water and property rebates and providing FSI incentives. But now these sops find no mention in the first-of-its kind "green building code" being readied by the government, said sources.      The new code, which will include mandatory and voluntary reforms, are in the final stages of preparation and will be soon announced, said a senior state official.      Last week, state chief secretary Jayant Kumar Banthia convened a high-level meeting to discuss these reforms.      Sources revealed that the financial implications of offering rebates in property and water taxes could have scuttled these incentives with the state finance department reportedly wary of the option. There was also no consensus and clarity on the FSI incentive plan, an official revealed. Finally, it was decided that the mandatory reforms in the new code must be pushed through without any incentive, the official added.      The government has, however, decided to continue with its initiative of granting priority for environmental clearance procedures to green buildings. Last year, the government introduced a scheme where buildings with green certification were given priority for environmental clearance; it was a tangible benefit as the environment clearances usually take over a-year-and-a-half. This initiative has been gaining popularity with developers.      The state has decided to first enforce the new code for government and semi-government owned and aided buildings; private buildings will be granted a "window period" of three years to comply with the mandatory reforms.      A few of the mandatory reforms include implementing rainwater harvesting for both roof and non-roof areas, planting trees on at least 15% of net plot area, using colour coded bins for waste segregation and reusing 50% of the construction waste. The state has included transplantation of 75% of uprooted trees as a voluntary measure, but made plantation of five saplings of every uprooted tree mandatory.      "Green buildings can reduce the footprint of greenhouse gas emissions by 20%," said Valsa Nair-Singh, secretary, environment department, adding that the government plans to take up promotion of green buildings as a mission. Chief minister Prithviraj Chavan has been pushing the administration to evolve a uniform code for green buildings. SOME OF THE MANDATORY REFORMS  Implement rainwater harvesting  Use minimum 50% of non-roof areas for parking, walkways, podiums with open grid/grass pavement  Plant native species of trees in at least 15% of the net plot area; plant five saplings for every tree uprooted  Place colour coded bins for segregation of waste in the building compound      Place solar light panels in common open areas, passages, gardens and internal roads; instal solar water heating system to take care of at least 75% of hot water requirement      Instal dual flush cisterns (capacity of 3-6 litres) in water closets      Limit maximum flow of water to 10 litres per minute; instal low flow urinals (2litre/flush)      Source at least 10% of construction material locally to reduce emissions due to transportation      Reuse 50% of the construction waste material within or outside the site, or donate it or sell it for recycling or reuse

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BMC rakes in 1.5k cr from FSI premium

Mumbai: The Brihanmumbai Municipal Corporation (BMC) has earned a major windfall, thanks to Mumbai's builders. The BMC earned Rs 1,500 crore in little over a year by charging builders a premium for utilizing compensatory floor space index (FSI). FSI defines how much can be built on a plot. 

    The premium, commonly known as fungible FSI in the construction industry, has become a major money spinner for the corporation. Within a year, it has become the third highest revenue earner after octroi (Rs 7,000 crore) and property tax (Rs 3,200 crore). The civic body will utilize this amount to augment Mumbai's infrastructure. 
    Amended development control rules now allow developers 35% extra area to build residential buildings and 20% additional area for commercial projects in lieu of a hefty premium to be paid to the BMC. These extra areas were earlier misused by unscrupulous builders, who surreptitiously sold them to buyers as part of the apartment. In 2011, the then civic chief Subodh Kumar framed a new policy to ensure builders pay a premium for utilizing these spaces. 
    Figures procured from the BMC show that builders between Bandra and Andheri (H & K wards)—this belt commands the highest residential property prices in the suburbs—collectively paid Rs 387 crore till last month. The Malad-Kandivli-Borivli zone contributed Rs 360 crore since last year. Developers in the eastern suburbs from Sion to Mulund 
paid a total premium of Rs 462 crore while those in the island city paid Rs 140 crore. Builders redeveloping slums paid another Rs 149 crore. 
    Civic officials said the premium collection is phenomenal, but feared this may not always be the case because of the slump in the property market. "Those who paid the premium are the builders whose projects are on-going. The market is now facing a down-turn and many developers may not opt for the extraFSI immediately," an official said. 
    The new policy was also formulated to streamline the non-transparent and highly corrupt building approvals system. It curtails the municipal commissioner's discretionary powers to grant building concessions to developers. Earlier, municipal commissioners liberally cleared projects with unusually large flower beds, voids, lily ponds and car decks. These areas are not included in the building's FSI. These concessions allowed developers to build an additional 50% to 80% above the permitted built-up area. They would sell these free spaces at market rate and then encourage them to illegally amalgamate these areas to make the apartment bigger. 
    But, among the worst to be hit by the new policy were small-time builders operating in the Bandra-Khar-Juhu belt. Over the past decade. these builder had been making a huge killing by manipulating building concessions granted to them by successive municipal commissioners. 
    Although the building approvals system has been streamlined—a civic circular issued last year said approval should come through within 60 days-—builders complain they are still being harassed by ward level civic staff. "Corruption is still prevalent. Earlier, they used to demand a fixed rate per sq ft. Now, they ask for a lump sum amount,'' said a developer.

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