To boost ‘housing for all mission’ of Prime Minister Narendra Modi in private sector, the Maharashtra government has decided to adopt a policy of offering incentives by permitting 2.5 Floor Space Index (FSI) to all the low-cost housing projects under Pradhan Mantri Awas Yojana (PMAY).
The government has also allowed 1 FSI on agriculture land and no-development zone for building affordable houses. Such projects shall benefit subsidy of Rs 2.5 lakh per home from the government and even all other benefits specified under PMAY.
The PMAY also allows the private sector to sell 50% houses at the rates of their choice and rest of houses to be sold at the price given by Maharashtra Housing and Area Development Authority.
On Monday, the state urban development department (UDD) issued a draft notification permitting the changes in the development control regulations (DCR).
The notification stated that 2.5 FSI will be permitted to development projects for constructing houses for EWS and LIG under PMAY and 1 FSI for building small houses on agriculture land and no development zones.
It further said, the affordable housing projects shall not fall on an environmentally sensitive zone, forest land or those having coastal regulation restrictions.
The principal secretary, state urban development department, Nitin Kareer said, “If a private person wants to construct houses for the economically weaker section (EWS) and Lower income group (LIG) on his own land then he will get 2.5 FSI under PMAY scheme,” He further added that the decision was taken by state cabinet last year.
In another circular, the UDD asked all the public agencies to start executing the incentive policy scheme of 2.5 FSI for development projects under PMAY either at private plots or public with speedy effect.
The state authority is also thinking to bring an Act for all the housing projects falling under PMAY for EWS and LIG groups to proved incentive FSI.
Under the scheme by 2022, the Maharashtra government has set a target of constructing 19 lakh low-cost houses.
Floor area ratio (FAR) (also floor space ratio (FSR), floor space index (FSI), site ratio and plot ratio) is the ratio of a building’s total floor area (gross floor area) to the size of the piece of land upon which it is built. The terms can also refer to limits imposed on such a ratio.