The Maharashtra government is likely to raise the floor-space index (FSI) from one to four for the areas to be connected by the Rs 7,000-crore Mumbai Trans Harbour Link (MTHL).
The move will benefit Navi Mumbai Special Economic Zone (NMSEZ), which is being developed by Reliance Industries Ltd (RIL) in a joint venture with the state government’s infrastructure arm, City and Industrial Development Corporation of Maharashtra Ltd.
Those who want to avail the higher FSI will have to pay a premium of 20 per cent on the rate mentioned for the area in the ready reckoner, said a senior official from the state government’s urban development ministry.
The FSI is the ratio of total floor area of a building to the size of the plot. It indicates the maximum construction allowed on a plot in a particular area.
The Mumbai sea link, connecting Sewri in the island city and Nhava Sheva across the creek, was to be developed earlier on a built-operate-transfer (BOT) basis.
However, after a bitter war between Ambani brothers over bagging the contract for the MTHL, the state government decided to scrap the bidding process and take up the showcase project of its $40-billion Mumbai Makeover programme on its own.
As part of the fresh proposal, the Mumbai Metropolitan Regional Development Authority (MMRDA), which has cash reserves of around Rs 10,000 crore, will part-fund the project.
The state government is considering various options for funding the rest, including levying an impact fee on property transactions in areas that are going to see escalation in prices due to the sea link, and allowing the MMRDA to commercially exploit the areas near the sea link.
The state government is also considering a similar move of granting a higher FSI at the Metro railway stations to reduce viability gap funding (VGF).
According to the state government’s estimates, it will have to pay a VGF of around Rs 4,500 crore to developers. This includes the VGF of around Rs 1,600 crore to be paid to Reliance Infrastructure (RInfra)-promoted Mumbai Metro One Pvt Ltd, which is developing Mumbai’s first metro line connecting Varsova, Andheri and Ghatkopar.
However, the biggest challenge for the government officials is to meet the January 26, 2009, deadline given by the political executive for the commencement of work on the sea link, the official added. The political executive wants to see the action on ground as the state is slated to go for the Assembly elections in the later part of the next year.
“We are currently facing problems in finding land for the casting yard on both the sides of the sea link. On the Mumbai side, problem can be sorted out by requesting the Mumbai Port Trust (MPT) to make land available on a temporary basis. The real problem lies on the other side of the link as the land suitable for the casting yard there is owned by private people,” the official said.
“We will also have to move a fresh application with the Ministry of Environment and Forest for getting environmental clearances in compliance with recent high court directives,” he said.
