+
 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

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
Infrastructure Transport

Syama Prasad Mookerjee Port Partners to Redevelop Nimtala Ghat

Kolkata: Syama Prasad Mookerjee Port, Kolkata (SMPK), signed a Memorandum of Understanding (MoU) on Tuesday with PS Group Realty Private Limited to redevelop and beautify Nimtala Ghat as part of PS Group’s Corporate Social Responsibility (CSR) initiative.The agreement was formalised at SMPK’s Head Office at 15, Strand Road, in the presence of SMPK chairman Rathendra Raman, deputy chairman Samrat Rahi, PS Group directors Saurav Dugar, Gaurav Dugar, Arun Sancheti, and senior SMPK officials.Under the MoU, PS Group will undertake the full redevelopment and permitted construction of Nimtala Imm..

Next Story
Infrastructure Urban

CSIR-NCL and Covestro Collaborate to Upcycle Polyurethane Waste

In a move towards sustainable plastic waste management, Pune-based CSIR-National Chemical Laboratory (CSIR-NCL) signed a Memorandum of Understanding (MoU) with Covestro (India) Private Limited on Wednesday to develop innovative upcycling technologies for polyurethane waste.Polyurethane is notoriously difficult to recycle, with current methods often proving inefficient, costly, and environmentally harmful. This collaboration aims to address existing challenges, including high energy usage and deterioration of material quality during recycling.Ashish Lele, director of CSIR-NCL, stated, “This p..

Next Story
Infrastructure Urban

Torrent Pharma Seeks CCI Approval for Rs 195 Billion JB Chemicals Deal

Ahmedabad-based Torrent Pharmaceuticals has sought clearance from the Competition Commission of India (CCI) to acquire a majority stake in J B Chemicals and Pharmaceuticals in a Rs 195 billion deal.Upon completion, Torrent Pharmaceuticals will become India’s second most valuable pharmaceutical company.The move follows Torrent’s June announcement to acquire a majority stake in J B Chemicals for Rs 195 billion.“The proposed combination pertains to the acquisition of shareholding by Torrent Pharmaceuticals Ltd in J B Chemicals & Pharmaceuticals Ltd, followed by the merger of the target ..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?