Faced with a tepid response to its earlier notification, wherein developers were compelled to build affordable houses in return for additional floor space index (FSI), the state government has decided to make major changes in the policy.
As per the present law, if a developer’s project is on an area of 2,000sqm or more, it is mandatory for him to build 20% houses for middle- and low-income buyers. In return, he is offered 20% FSI as an incentive.
The modified notification will be more builder-friendly. According to a senior government official, the concerned plot size has been increased to one acre (4,000sqm).
“We are still working on changes, and the fresh notification will be issued in June. Once it is approved, it will be tabled before the state cabinet. Suggestions and objections will be invited,” said another official, adding that there were several objections to the earlier notification.
Anand Gupta, treasurer of the Builder Association of India, said that the government was chasing popular schemes. “These kinds of schemes will not fulfil the purpose of the law. It is impossible to offer the 20% MIG and LIG houses on private land,” he said.
“Those who have booked the big flats do not want to stay alongside the owners of small houses. It is a class conflict, and is part of the system. Even in the railways, there are second- and first-class compartments,” Gupta added.
Another developer, requesting anonymity, said that Mumbai was an island city where land shortage was a bigger issue. “We cannot afford and implement this scheme on small portions of land. I am happy that the government has realised it and extended the plot size,” he said.
He suggested that this scheme’s success could be tested on government land, since there were several plots owned by the BMC, Mhada, the Collector and the central government.
“We do not construct one-room-kitchens and 1BHK houses if they are for high- end luxury users. It hampers the sales of the 3BHK and 4BHK houses. This is one of the reasons very few small houses have been constructed in the city,” he said.
