Redevelopment in suburbs set for a sea change with new TDR regime
Govt to link floating FSI rights to market rates,allow its use anywhere in suburbs
Redevelopment of properties in suburban Mumbai is set to change with the state government proposing to unlock more areas where transfer of development rights (TDR) can be utilised. The TDR is floating floor space index (FSI) issued by the Brihanmumbai Municipal Corporation (BMC) in the form of a certificate on the surrender of land reserved for public activities. It is also generated from slum rehabilitation projects.
While as per existing norms,the TDR can be utilised for redevelopment of a plot situated to the north of property from where it is generated,the state Urban Development (UD) department has now proposed to withdraw this rider. It has proposed to allow loading of TDR anywhere in the suburbs,a senior official said. But to ensure that builders do not make unreasonable gains,it has proposed “indexing” of the TDR.
The proposal has been put up for approval before Chief Minister Prithviraj Chavan,who also holds the UD portfolio. Sources said Chavan was in favour of the move and is likely to approve the proposal in the next few days. The TDR is a vital component for builders redeveloping suburban properties since it increases the built-up area over and above the permitted floor space index (FSI) on the plot. It can only be used in the suburbs.
Under the new regime,the market rates (ready reckoner values) for areas where the TDR is generated and loaded would be taken into consideration.
For instance,if a TDR of 4,000 sqm is generated from a plot on SV Road in Bandra where the prevalent RR rate is Rs 1.20 lakh per sqm,and it is to be utilised on a plot on SV Road in Malad,where the RR rate is around 66,000 per sqm,then the TDR will be doubled (to 8000 sqm). Similarly,if the same TDR were to be generated on the Malad plot and was to be utilised in Bandra,it will be halved. Under the present regime,the TDR value would have been unchanged. It would also not be possible to use TDR generated in Malad on a Bandra plot as it situated southwards.
The proposal also includes indexing of TDR generated from a heritage site. The move is based on recommendations made by the Mumbai Heritage Conservation Committee (MHCC) for extending incentives to private owners for conserving heritage structures.
A sudden spiralling of TDR rates in the last few months has jeopardised several redevelopment projects.
A senior government official said the new regime would also help in reining in TDR prices. The proposed extension of cluster redevelopment model to suburban areas is also expected to impact TDR rates.
sandeep.ashar@expressindia.com
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