Mumbai suburbs could get back extra 0.33 floor space

He said it would curb the spiralling prices of the Transfer of Development Rights (TDR),which was mainly controlled by a cartel of builders,besides bringing in revenue for the government and the Brihanmumbai Municipal Corporation (BMC).

He said projects in the suburbs could consume up to 2 FSI (comprising base FSI of 1 and TDR FSI of 1). The TDR is floating FSI generated from slum rehabilitation projects.

The government had,in 2008,decided to allow an additional 0.33 FSI to the base FSI,making it 1.33 at a premium to be shared between it and the BMC.

The decision had led to crash in TDR prices and the revenue generated was to the tune of Rs 2,000 crore in a year,much more than the expected target of Rs 1,400 crore.

However,the decision to grant additional FSI for a premium was challenged in the Bombay High Court on grounds that there was no such provision in the MRTP Act. It was also pointed out that the government had not invited suggestions and objections before taking the decision. The High Court had quashed the government’s decision.

In 2010,the government had passed a Bill in the Assembly to amend the MRTP to enable it to provide additional FSI at a premium. The reintroduction of the 0.33 FSI was delayed owing to the change of guard in the state.

Officials said the amendment to the Act had paved way for the reintroduction of the 0.33 additional FSI in suburbs. They said the additional FSI would bring down construction costs as the government’s FSI was cheaper than the TDR sold by a cartel of builders and developers.