Sucheta Dalal :Cluster development sounds good on paper but where is the space in Mumbai?
Sucheta Dalal

Click here for FREE MEMBERSHIP to Moneylife Foundation which entitles you to:
• Access to information on investment issues

• Invitations to attend free workshops on financial literacy
• Grievance redressal

 

MoneyLife
You are here: Home » What's New » Cluster development sounds good on paper, but where is the space in Mumbai?
                       Previous           Next

Cluster development sounds good on paper, but where is the space in Mumbai?  

May 13, 2010

The government of Maharashtra has granted different percentages of incentive floor space index (FSI) for various ranges of amalgamated plots that will be used for cluster development. Cluster development allows redevelopment of old cessed buildings which have been constructed prior to 30 September 1969 and which have a built-up area of up to 2,000 sq mt. There’s an FSI of 4 for cluster development of amalgamated plots.

 

 According to Section 37(2) of the Maharashtra Regional & Town Planning Act, 1966, these incentive FSI numbers will be granted for cluster development for the following size of amalgamated plots:

 

 

1) Where the total area of amalgamated plot is between 4,000 sq mt-8,000 sq mt, the incentive FSI admissible will be 55%

  • 2) Where the total area of amalgamated plot is between 8,001 sq mt-12,000 sq mt, the incentive FSI admissible will be 65%
  • 3) Where the total area of amalgamated plot is between 12,001 sq mt-16,000 sq mt, the incentive FSI admissible will be 70%
  • 4) Where the total area of amalgamated plot is between 16,001 sq mt-20,000 sq mt, the incentive FSI admissible will be 55%
  • 5) Where the total area of amalgamated plot is more than 20,000 sq mt, the incentive FSI admissible will be 80%.

 

There are 16,000 cessed buildings in Mumbai and the government is targeting 20 years to complete the re-development of these structures. “You have to develop 800 buildings per year to meet the target. Each re-development takes at least three years-four years for completion. Around 2,500 buildings have to be re-developed at one time which will create chaos,” said Pranay Vakil, chairman, Knight Frank (India) Pvt Ltd.

 

Most of these cessed buildings which have been earmarked for re-development are located in the congested southern part of the city where there is hardly any place to park an automobile. The government has allowed incentive FSI in those areas which are already crowded—like Bhuleshwar and Kalbadevi in south Mumbai.
Pallabika Ganguly


-- Sucheta Dalal