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