Maharashtra raises floor space index to meet budget deficit
on march 19, Maharashtra increased the floor space index (fsi) ratio in Mumbai's suburbs. State finance minister Jayant Patil said the new fsi will be 1.33. Earlier the figure was one. The decision, included in the state budget, brings suburbs on par with the island city which already has an fsi of 1.33.
fsi is the rate of the permissible developable area on any plot. Developers will be able to build an additional 33 per cent on a given plot of land in the suburbs by paying a premium on this additional fsi as per the market value. "It is a money-making opportunity for the government. Increased fsi is expected to add Rs 1,400 crore to the state exchequer. Changing fsi is part of the development plan to be prepared by a planning authority under the Town Planning Act; not a matter to be dealt within the state budget,' alleges V K Phatak, former chief planner with Mumbai Metropolitan Region Development Authority. "Raising fsi will lead to an increase in housing supply,' says Anuj Puri of Mumbai-based Jones Lang LaSalle Meghraj Property Consultants.