New BMC plan to redevelop markets also gives incentives to builders

Less premium proposed for willing developers

BMC has tabled a modified version of a plan for redevelopment of 25 civic markets that was scrapped last year due to perceived undue favours to builders, but the new proposal also grants major incentives to developers.

The plan now is to levy less premium on builders willing to redevelop the markets, so that the process is expedited.

The premium will now be calculated based on the ready reckoner land rate, which is significantly lower than the commercial ready reckoner rate proposed earlier. The existing urban development policy gives redevelopment an FSI of 2.5 to 1.33, depending on the year a market was originally built. The BMC-builder FSI ratio is 1:0.6 for markets in island city and 1:1 in suburbs, irrespective of market price.

The new policy seeks to calculate profits earned by builders using a formula that takes into account ready reckoner values of a plot relative to the remaining markets in both island city and suburbs.

Improvement committee chairman and BJP corporator Ram Barot said, "The proposal seeks to levy premium at double the ready reckoner rate, which is less than what was proposed in the original market plan. We will finalise it after due deliberation."

BMC had last year proposed a variation in the original market policy of 2004, which sought to increase the premium to be paid by builders.

The "stringent" and "unfeasible" proposal was, however, sent back for modifications following opposition from corporators.

Later, another proposal favouring builders was drafted but this was also rejected.

Comparison

The existing urban development policy gives redevelopment an FSI of 2.5 to 1.33, depending on the year a market was originally built. The BMC-builder FSI ratio is 1:0.6 for markets in island city and 1:1 in suburbs, irrespective of market price

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