The Times of India 11.09.2009
Premium FSI introduced to permit extra built-up space in Chennai Metropolitan Area
CHENNAI: It's bonanza time for builders and developers in the city. After slashing infrastructure and amenity charges, the state government has introduced premium floor space index (FSI is the ratio of land area to built-up area) in the Chennai Metropolitan Area (CMA) with a view to permitting builders construct extra floor space against payment of a premium.
According to a government order passed on Wednesday, the premium FSI is applicable to the entire CMA limits, comprising 1,189 sq km area falling under Chennai corporation, 16 municipalities, 20 town panchayats and 214 village panchayats in Chennai, Tiruvallur and Kancheepuram districts. The Red Hills reservoir catchment region and areas adjoining water bodies maintained by the Chennai Metropolitan Water Supply and Sewerage Board for drinking water purpose have been exempted from paying premium FSI. Premium FSI was announced in the second master plan for CMA, released in September 2008, but it has come into effect only on September 9, 2009, the date of issue of the GO.
FSI can be availed on all plots abutting roads that have a minimum width of 30 feet. The premium FSI for plots abutting roads that have a width of 30 feet or more and below 40 feet is 20% of the normal FSI. For plots that abut roads that are 40 feet to below 60 feet, the premium FSI is 30%, and for plots that abut roads having a width of 60 feet or more, it is 40%. For example, a person who proposes to avail premium FSI on 1,000 sq ft land abutting 40 feet road (which has a normal FSI of 1.5) can construct up to 1,950 sq ft instead of the normal 1,500 sq ft. However, a maximum cap of one FSI has been fixed for the premium FSI. Otherwise, the promoter cannot avail a premium FSI of more than 1,000 sq ft on land measuring 1,000 sq ft.
Regarding payment, the promoter who avails one sq metre premium FSI on land eligible for a normal FSI of 1.5, has to pay the guideline value of 0.66 sq metres of land as premium FSI charges. In case the land is eligible for two FSI, for every one sq metre of premium FSI the promoter avails, he has to pay a guideline value of 0.5 sq metre of land as premium FSI fees. If the land is eligible for a normal FSI of 2.5, then the promoter has to pay a guideline value of 0.4 sq metre of land for every one sq metre premium FSI he builds. The guideline value fixed by the registration department is applicable for calculating the charges.
The applicant has to remit the premium FSI charges upfront to the Chennai Metropolitan Development Authority (CMDA) before getting planning permission for the project. The amount thus collected from the promoters will be remitted in a separate government account, which will be utilised for infrastructure development in that area, the GO said. Since the premium FSI has not been introduced with retrospective effect, all building violations which have taken place in the city in the past will not stand to gain from it.
Reacting to the GO, Confederation of Real Estate Developers' Association of India's Tamil Nadu chapter president Prakash Challa said, "It will help builders exploit fully land in the city where price is prohibitively high."
According to a government order passed on Wednesday, the premium FSI is applicable to the entire CMA limits, comprising 1,189 sq km area falling under Chennai corporation, 16 municipalities, 20 town panchayats and 214 village panchayats in Chennai, Tiruvallur and Kancheepuram districts. The Red Hills reservoir catchment region and areas adjoining water bodies maintained by the Chennai Metropolitan Water Supply and Sewerage Board for drinking water purpose have been exempted from paying premium FSI. Premium FSI was announced in the second master plan for CMA, released in September 2008, but it has come into effect only on September 9, 2009, the date of issue of the GO.
FSI can be availed on all plots abutting roads that have a minimum width of 30 feet. The premium FSI for plots abutting roads that have a width of 30 feet or more and below 40 feet is 20% of the normal FSI. For plots that abut roads that are 40 feet to below 60 feet, the premium FSI is 30%, and for plots that abut roads having a width of 60 feet or more, it is 40%. For example, a person who proposes to avail premium FSI on 1,000 sq ft land abutting 40 feet road (which has a normal FSI of 1.5) can construct up to 1,950 sq ft instead of the normal 1,500 sq ft. However, a maximum cap of one FSI has been fixed for the premium FSI. Otherwise, the promoter cannot avail a premium FSI of more than 1,000 sq ft on land measuring 1,000 sq ft.
Regarding payment, the promoter who avails one sq metre premium FSI on land eligible for a normal FSI of 1.5, has to pay the guideline value of 0.66 sq metres of land as premium FSI charges. In case the land is eligible for two FSI, for every one sq metre of premium FSI the promoter avails, he has to pay a guideline value of 0.5 sq metre of land as premium FSI fees. If the land is eligible for a normal FSI of 2.5, then the promoter has to pay a guideline value of 0.4 sq metre of land for every one sq metre premium FSI he builds. The guideline value fixed by the registration department is applicable for calculating the charges.
The applicant has to remit the premium FSI charges upfront to the Chennai Metropolitan Development Authority (CMDA) before getting planning permission for the project. The amount thus collected from the promoters will be remitted in a separate government account, which will be utilised for infrastructure development in that area, the GO said. Since the premium FSI has not been introduced with retrospective effect, all building violations which have taken place in the city in the past will not stand to gain from it.
Reacting to the GO, Confederation of Real Estate Developers' Association of India's Tamil Nadu chapter president Prakash Challa said, "It will help builders exploit fully land in the city where price is prohibitively high."