“In order to encourage transit-oriented development (TOD) in certain corridors such as metro rail, suburban rail, national highways, and bypass roads, the government has decided to raise the existing floor space index in adjoining areas,” the FM said.
Addressing the media after the budget presentation, Finance Secretary N Muruganandam clarified that the FSI will be increased up to 3.25 FSI. In 2019, the State has 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). The announcement has come at a time when the suburban rail network and Metro Rail network are crisscrossing Chennai.
S Sridharan, chairman of policy advocacy (urban development and housing), which is a part of the Confederation of Real Estate Developers’ Associations of India (CREDAI), said the incentives will help developers come and develop the area. “Also, consumers will get houses at competitive prices,” he said.
Areas along ORR will become a Development Corridor as the government proposed large-scale residential complexes, industrial parks, and others.
“The 50-metre-wide stretch adjoining the eastern side of the ORR from Minjur to Vandalur with a length of 62 km will be developed as a Development Corridor,” the statement said.
“We welcome the budget announcements. Presently, builders have to submit physical documents despite applying online. This will help the industry,” S Rama Prabhu, state secretary of Builders’ Association of India, said.