Windfall for housing societies opting for self-redevelopment

Single-window clearance, additional FSI, TDR are among the concessions the government plans to offer

The Maharashtra government will give concessions in floor space index (FSI) and transferable development rights (TDR) for housing societies opting for self-redevelopment. A committee comprising senior State bureaucrats has presented its report to the government recommending concessions for societies on leased and private land opting for self-redevelopment. The Cabinet had approved the move in March and formed a committee of bureaucrats from the Urban Development and Revenue departments to decide on the extent of concessions.

The committee report has suggested an additional 10% FSI over and above what is proposed under the Development Control Rules (DCR), while allowing a 50% concession on charges related to the DCR for societies going in for self-redevelopment. A one-window clearance system, eligibility criteria of 30 years in age and a six-month period to submit an application are some of the other recommendations. “We have recommended a 0.2% additional FSI for societies on road width of 9 m, while other waivers are being suggested in the Land Under Construction tax,” said a senior official.

The committee has also recommended concessions in rates applied as part of the Goods and Services Tax (GST), stamp duty and premium for open space deficiencies. Other concessions have also been granted on front and side margins of a project.

“We have allowed making State cooperative banks as the agencies that could finance and help societies undertake such projects,” said a senior UDD official.

Self-redevelopment is one where the construction process is executed by society members, who have the conveyance in their names. Under the latest changes, such societies will also be charged a reduced premium for the paid FSI component, and a 4% interest subsidy for availing of construction loans. “We are also making such projects eligible for 10% additional tenement area,” said an official.

The new policy is aimed at liberating residents from the clutches of builders who drive the redevelopment process. It is also likely to result in more space and better quality construction, town planners said. “Among other benefits such as extra carpet area for residents, powers will remain with the society and fear of being moved to a poor location by builders will no longer exist. The residents can themselves decide on amenities and other facilities during the planning process,” said an official.