BMC to incentivise developers for housing redevelopment
Real Estate

BMC to incentivise developers for housing redevelopment

The Brihanmumbai Municipal Corporation (BMC) will offer various incentives to real estate developers for the redevelopment of small houses on its leased lands under a new policy.

Under the new policy, developers can now avail additional development rights and relaxation in the payment of premium. The new policy was approved by BMC last week.

According to officials, there are many dilapidated buildings under BMC limits that are over 50 years old. With no benefits in sight, developers believed that redevelopment of such properties was not financially viable.

Under the old policy, redevelopment of old properties that are constructed on BMC owned land and given on long term leases was not being undertaken. The majority of these houses are between 225 and 300 sq ft. However, developers would have to provide flats with at least 325 sq ft area while redeveloping these properties, irrespective of the earlier flat size. In such cases, the developers could not get the sale component due to inadequate floor space index (FSI), officials told the media.


4th Indian Cement Review Conference 2021

17-18 March 

Click for event info


As a part of the new policy, developers will be offered 50 to 70% additional incentive areas on redevelopment. Developers can also pay their premiums in five instalments. Previously, the premium had to be paid in two instalments—50% with the grant of the commencement certificate and the other part after obtaining the occupation certificate.

The policy has also brought down interest rates on the delay of premium payment from 18%. In case of delay, developers will have to pay interest between 8.5% and 12%.

The new policy also provides relief in terms of the redevelopment deadline. Earlier, builders had to complete the redevelopment in three years. This can now be undertaken between five years and seven years, depending on the plot's size in question.

Image Source


Also read: BMC nod for 50% premium cut to realty firms

Also read: L&T to redevelop Naigaon chawl

Your next big infra connection is waiting at RAHSTA 2025 – Asia’s Biggest Roads & Highways Expo, Jio World Convention Centre, Mumbai. Don’t miss out!

The Brihanmumbai Municipal Corporation (BMC) will offer various incentives to real estate developers for the redevelopment of small houses on its leased lands under a new policy. Under the new policy, developers can now avail additional development rights and relaxation in the payment of premium. The new policy was approved by BMC last week. According to officials, there are many dilapidated buildings under BMC limits that are over 50 years old. With no benefits in sight, developers believed that redevelopment of such properties was not financially viable. Under the old policy, redevelopment of old properties that are constructed on BMC owned land and given on long term leases was not being undertaken. The majority of these houses are between 225 and 300 sq ft. However, developers would have to provide flats with at least 325 sq ft area while redeveloping these properties, irrespective of the earlier flat size. In such cases, the developers could not get the sale component due to inadequate floor space index (FSI), officials told the media.4th Indian Cement Review Conference 202117-18 March Click for event info As a part of the new policy, developers will be offered 50 to 70% additional incentive areas on redevelopment. Developers can also pay their premiums in five instalments. Previously, the premium had to be paid in two instalments—50% with the grant of the commencement certificate and the other part after obtaining the occupation certificate. The policy has also brought down interest rates on the delay of premium payment from 18%. In case of delay, developers will have to pay interest between 8.5% and 12%. The new policy also provides relief in terms of the redevelopment deadline. Earlier, builders had to complete the redevelopment in three years. This can now be undertaken between five years and seven years, depending on the plot's size in question. Image Source Also read: BMC nod for 50% premium cut to realty firms Also read: L&T to redevelop Naigaon chawl

Next Story
Building Material

Nuvoco Vistas Unveils Expansion Plans in the East

Nuvoco Vistas Corp, India’s trusted building materials company and the country’s fifth-largest cement player by capacity, has announced significant expansion plans to strengthen its presence in the East. The strategy focuses on sustainable growth, wider market reach, and enhanced competitiveness.The company will invest approximately Rs 2 billion to increase cement grinding capacity by 4 MMTPA in the East by FY 2026-27. This includes setting up a new mill at the Arasmeta Cement Plant and executing debottlenecking projects at Jojobera, Panagarh, and Odisha plants. The phased expansion will a..

Next Story
Infrastructure Urban

VECV and Jio-bp Pulse Partner to Expand EV Charging for Commercial Vehicles

VE Commercial Vehicles (VECV), a joint venture between the Volvo Group and Eicher Motors, has signed a Memorandum of Understanding (MoU) with Jio-bp pulse to strengthen EV charging infrastructure for its electric commercial vehicle customers. The partnership will give all Eicher Trucks and Buses’ EV customers seamless access to Jio-bp’s network of over 6,000 charging points, India’s largest DC fast-charging footprint, spanning cities, highways, and purpose-built EV hubs designed for all types of commercial vehicles.Jio-bp, the fuel retail joint venture of Reliance Industries and bp, oper..

Next Story
Technology

NX Group Unveils Roadmap to Power India’s Semiconductor Growth

NX Group (Nippon Express Group) has outlined its strategic roadmap to strengthen India’s semiconductor ecosystem, highlighting the pivotal role of logistics in supporting the nation’s emergence as a global semiconductor manufacturing hub.Speaking at SEMICON India 2025, NX Group (India) announced its ambition to triple revenues from 2023 levels and reach $400 million by 2028, driven by its focus on delivering innovation-led, reliable logistics solutions tailored for the semiconductor sector. India’s semiconductor market is projected to reach $109 billion by 2030, three times its 2023 size..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?