To boost growth along Metro corridor, premium FSI charges slashed

CHENNAI: To boost the real estate growth in the city along the Metro rail corridor, the Tamil Nadu Housing and Urban Development department has reduced charges for availing premium FSI (Floor Space Index) for existing and new buildings.

According to a government order issued by the department a few days ago, amendments have been made in the Tamil Nadu Combined Development and Building Rules, 2019 to reduce the charges.

"In case of Metro rail corridors, existing, under execution and proposed for which administrative sanction has been issued by the government, for the properties located within a distance of five hundred metres measured from the centre line of the corridor, premium FSI shall be charged at fifty percent of the applicable premium FSI charges," read the government order.

Presently, Chennai Metropolitan Development Authority (CMDA) charges 50 per cent of the guideline value for availing premium FSI for non-high-rise buildings and 40 per cent of the guideline value for high-rise buildings.

"With the new order, builders have to pay only 25 per cent of the guideline value for availing premium FSI for non-high-rise buildings and 20 per cent of the guideline value for high-rise buildings," S Ram Prabhu of Builders Association of India (BAI) said.

The Tamil Nadu Combined Development and Building Rules, 2019 allows 2 FSI in the city. In 2019, the State government increased the 1.5 FSI to 2 FSI and the planning permissions are being issued based on 2 FSI in addition to premium FSI (which is calculated based on road width).

Meanwhile, the State government, in its budget announcement, said that FSI will be increased along the major transportation corridors, including Metro rail, to encourage transit-oriented development. Officials expressed that the FSI would be increased upto 3.25 along the corridors. Before increasing the FSI, the government has slashed charges for premium FSI.

In another development, CMDA has constituted a committee to study the possibilities of increasing FSI in aquifer recharge areas that are located along the East Coast Road.