This story is from March 21, 2015

Proposed devpt regulations cap use of flexible TDR at 14%

Flexibility in the use of transfer of development rights (TDR) provided for in the proposed Development Control Regulations may amount to little. For, there is restriction on the amount of TDR that can be used on a plot
Proposed devpt regulations cap use of flexible TDR at 14%
MUMBAI: Flexibility in the use of transfer of development rights (TDR) provided for in the proposed Development Control Regulations may amount to little. For, there is restriction on the amount of TDR that can be used on a plot.
Only 0.5 floor space index (FSI) or 6-14% of the development potential (floor space index) of a plot can be in the form of TDR, according to the proposed draft Development Control Regulations 2034.
The new formula proposes that TDR generated in Area A can be used in Area B.
The quantum to be used in Area B will be the TDR generated multiplied by the ready reckoner rate in Area A divided by the ready reckoner rate in Area B. The new formula ensures developers do not profiteer by using TDR generated in a down-market area in an upmarket one.
Explaining the formula, municipal commissioner Sitaram Kunte said if the TDR generated in Chembur is 100 square feet and is to be used in South Mumbai, then the higher Ready Reckoner Rate of South Mumbai would ensure that the TDR utilizable is reduced to 10 sq ft.
Ajit Khatri, former president, Practising Engineers, Architects and Town Planners Association (PEATA), while explaining the concept, said the base FSI of a plot is being increased to 2-2.5 but it will include staircase, passages and so on, which are currently free of FSI.
If a developer wants to further load FSI on the plot, then first it must be premium FSI A, which is between 0.5 and 2.5, depending on the total FSI to be utilized. It is to be purchased from the government. Additional FSI can be loaded through TDR but the limit is 0.5. Beyond this, FSI on a plot can be loaded but again has to be bought from the government. Premium FSI B also varies from 0.5 to 2.5.

Khatri said even in areas where the FSI is 8, the TDR component remains only 0.5 while the premium FSI is 5. “This is how the government will raise its revenue of Rs 3,500-5,000 crore from the construction industry. It will enrich the government but owning a house will remain out of reach of most people.”
Sunil Mantri, president National Real Estate Development Council and chief managing director Mantri Realty, said allowing flexibility in the use of TDR was a good step but the government must price its additional FSI more realistically.
“Higher premium will drive up the price of TDR. We have written to the government to increase its FSI from 0.33 to 0.75 and to charge the same premium of 10-30% at today’s ready reckoner rate,’’ he said. Higher premium, said Mantri, will only create luxury housing and this would be detrimental to growth. Pujit Aggarwal, general secretary, Property Redevelopers Association, and MD Orbit Corporation, said housing stock will increase but prices will not fall.
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About the Author
Clara Lewis

Clara Lewis is an Editor (Government & Policy). She enjoys meeting people, reading and travel, and keeps her eye on the changing face of the city and its rapid evolving demographic profile. She looks forward to playing with her 3-year-old son, Amartya, at the end of each workday.

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