Maha Govt Seeks Views On 50% Premium Waiver for Developers

To boost the real estate sector, the state government has asked the BMC whether it is feasible to reduce the premiums that it collects from developers by 50% and collect the remaining half only when the projects are completed and builders apply for an Occupation Certificate, as recommended by the Deepak Parekh committee. The Parekh panel has recommended that there must be a 50 per cent cut in different premiums taken by the BMC from the real estate industry such as for enhanced FSI, TDR, second staircase and others. The committee has recommended that it should be slashed by 50 per cent across the board for all these premiums, not only for the city but for the entire state. The issue was referred to the BMC by the state's Urban Development (UD) department.  Apart from the BMC, the state government has also sought the views of the Thane and Pune Municipal Corporations on the issue. According to the Parekh panel’s findings, developers have to pay 22 premiums and charges for carrying out construction activity in the city. “The number of heads increases based on the type of project and land holding. For Mumbai, the hefty premium translates into significantly higher costs, resulting in deep inefficiencies and increased working capital requirements in a market where lenders are risk averse and reluctant to fund developers. “The government must reduce all premiums/charges for staircases, lift well and lobbies, amongst several others by 50% under the Development Control Rules (DCR) which is payable to the BMC or state government. These premiums should be paid at the time of granting of OC without any interest being levied.” the panel has recommended.