Maharashtra govt plans to raise FSI in Greater Mumbai

CM Fadnavis allows bonds to be raised by BMC; sets two-year target to BMC for completion of Rs 8,500-cr coastal road project

The Bharatiya Janata Party (BJP)-led government in Maharashtra on Friday announced a slew of steps to transform the Mumbai Metropolitan Region (MMR) into a global financial, commercial and entertainment hub. These included increasing the floor space index (FSI, the ratio between the total built-up area and the plot area), creating an information technology-based platform for project clearances, implementation of a Rs 8,500-crore coastal road project in two years and completing the first phase of the Navi Mumbai international airport by 2019.

The announcements were made at the Mumbai Next MMR Transformation Conclave, organised by the state and non-government organisation Mumbai First.

Fadnavis said the Brihanmumbai Municipal Corporation (BMC) and 25 municipal corporations in the state would be allowed to issue bonds. “There are outlays but no outcomes, as 32-40 per cent (of the allocation) remains unused. The government will allow municipal corporations to raise bonds but the money will have to be spent within a time limit,” he said.

BMC Commissioner Sitaram Kunte, who also addressed the conclave, told Business Standard the civic body could raise up to Rs 5,000 crore through bonds. “It is too early to speak about specific plans, as the government has just indicated its willingness to allow the BMC to raise money through this route,” he said.

Analysts said for BMC to raise funds from the bond market, it would need to be rated for its financial instrument. BMC had presented a Rs 33,514-crore budget for 2015-16, Kunte said the FSI in Greater Mumbai would be increased soon due to population growth and demand for housing. Details on the rise in FSI will be incorporated in the city’s development plan, to be released by February 15.

Currently, the FSI is 1.33 for the island city; for the suburbs, it is one. As there is a transfer of development right (TDR) potential of up to one FSI in the suburbs, the FSI works out to two. In the Mumbai island city, an FSI of three is allowed for redevelopment.

At Friday’s conclave, Fadnavis set an ambitious target for the BMC to complete a 35.6-km coastal road connecting the city’s north and south. He said the road would be made in two years, instead of the four to five estimated earlier. Work would begin in three months, after all statutory approvals were received, the chief minister said.

A fortnight ago, the Maharashtra Coastal Zone Management Authority had approved the BMC’s proposal in this regard, with a rider that the reclaimed land would not be used for real estate development or commercial purposes, but for roads, open spaces and cycle tracks alone.

On the development of the Navi Mumbai airport, Fadnavis said the government had decided the first phase would be completed by 2019. The government, to expedite clearances, would put in place an information technology-based based platform, he added. To avoid delays in project development, a war room has been set up at the chief minister’s office for coordination among 17 government departments and agencies.

The chief minister said the government would soon release a tourism policy. It would also carry out a makeover of the Filmcity, an integrated film studio complex at Goregaon, north Mumbai.