50 per cent discount on premium FSI for buildings along new Chennai Metro corridor – The New Indian Express

Express News Service

CHENNAI: Tamil Nadu government has allowed up to 50% discount on premium FSI charges for properties located within 500 metres from the central line of the proposed Metro Rail Project Phase II. The State housing secretary issued an order to this effect recently after amending the Tamil Nadu Combined Development and Building Rules (TNCDBR), 2019.

While FSI of one will mean 100 sqft can be built on a 100 sqft plot of land, FSI of two will allow 200 sq.f to be constructed on a 100 sq.ft plot. The Comprehensive Mobility Plan has proposed FSI of 2.5 along all the proposed metro corridors.

The second phase covering a distance of 118.9km from north to south encompasses three corridors — Madhavaram to SIPCOT, Madhavaram to Sholinganallur and Light House to Poonamallee. Earlier, TNCDBR has allowed FSI relaxation for existing metro corridors from Wimco Nagar to Chennai Airport and Chennai Central to Airport.

Developers feel this would result in huge development along the metro rail as premium FSI may be available at concessional rates. Currently, premium FSI charges in the city are at 40% to 50% of guideline value depending on high-rise or non-high-rise buildings.

S Sridharan, chairman, Urban Development/ Affordable Housing Committee, Confederation of Real Estate Developers Associations of India (CREDAI-National), said a long-pending demand of CREDAI has now been accepted by the government.Anshuman Magazine, chairman and chief executive officer – India, South-East Asia, Middle East & Africa, CBRE, said the initiative would boost real estate activity and reduce project cost in Chennai.

While the existing metro rail network connects the city’s core areas, upcoming lines are expected to connect suburbs such as OMR I, II, III in the south, Purasawalkam, Perambur, Madhavaram in the north and Mount Poonamallee High Road in the west. The concession on premium FSI charges in these micro-markets would increase new office space availability and residential projects along the corridor, Magazine said.

A Shankar, Chief Operating Officer, Strategic Consulting and Valuation, JLL West Asia, said, “This amendment is a welcome move since it includes proposed corridors and those under execution. This would cover many more areas of Chennai. This would also help projects to be timed along with development of metro lines. This gives more clarity since corridors under execution are also included.”

Sources said the growth may not be uniform. While prices may stabilise in well developed markets like Sholinganallur, other areas such as Navalur, Padur and Thoraipakkam may see more growth. Former Anna University professor of urban engineering K P Subramanian said, “The FSI must be in correlation with the carrying capacity of the area in terms of transport accessibility, water supply and liquid and solid waste management. Augmentation of basic infrastructure and amenities must precede development. Otherwise, quality of life will be affected and environment condition may deteriorate.”

“The FSI was increased along MRTS corridor in 2012 but there were only a few takers. An announcement to increase FSI along metro corridor above 2.0 was announced early this year too elicited tepid response. It will be desirable to undertake a detailed study before announcing new decisions,” he said.