Developers, Homebuyers Cheer As Tamil Nadu Govt Revises FSI

Since cities must grow vertically to meet the rising housing demand, especially when the government is aiming to build affordable homes under Pradhan Mantri Awas Yojana (Urban), the need to increase the FSI is much more than ever. What comes as good news for developers in Tamil Nadu is the state government’s decision to increase the free Floor Space Index (FSI) for residential buildings from 1.5 to 2, as per an official release.

 The FSI value for multi-storied residential buildings has been changed from 2.5 to 3.5. As per the revised provisions on ‘premium FSI’, multi-storied residential buildings will receive a maximum FSI value of 3.62 on payment of charges. On the other hand, FSI for multi-storied commercial buildings will be 2.5 whereas ordinary and special buildings for commercial use will be 1.5.

The Union Housing and Urban Affairs have been considering the upward revision of the Floor Space Index (FSI) norms across major Indian cities. On October 29, the Tamil Nadu government issued an order with detailed guidelines pertaining to increase in free FSI (floor space index) and premium FSI.

The move is expected to add about 33.33 per cent additional built-up area for buildings while bringing down the prices of residential properties.

What is Floor Space Index?

The Floor Space Index (FSI) or Floor Area Ratio (FAR) refers to the built-up area of a building to the area of the plot on which it is built. It is set by the municipal corporation or the development authority as per the Development Control Regulations (DCR). Different cities have their own FSI values.

In September 2009, the Tamil Nadu government introduced premium Floor Space Index across the Chennai Metropolitan Area (CMA) limits including areas falling Chennai corporation, some town panchayats and over 200 village panchayats. The government order, which was passed then, allowed developers to construct extra floors on payment of a premium, that is, additional FSI would be granted over and above the permissible FSI, subject to the condition that the Premium FSI allowed would be 1, and also depending on road width.

The FSI for multi-storeyed buildings is between 2 and 2.5, which varies based on the abutting road width and the plot size.

 -          For road width of 18 metres and above, 40 per cent of normally allowable FSI

-          For road width of 12 metres, below 18 metres, 30 per cent of normally allowable FSI

-          For road width of 9 metres, below 12 metres, 20 per cent of normally allowable FSI

 What does the revision mean for TN?

The TN government reviewed the draft amendment proposal sent by the Chennai Metropolitan Development Authority (CMDA) and the Commissioner of Town and Country Planning. It is willing to accept the proposal with some modifications and studies on per capita land availability and current FSI norms in Chennai and other areas of the state.

Many cities in India and across the world have a policy which considers the periodic revision of the FSI over a certain period, keeping in view the rising population and corresponding housing needs.

 Reduction in housing cost

The state government has issued a government order, amending the Second Master Plan of Chennai Metropolitan Area and the Development Control Regulations in other parts of Tamil Nadu. Under the Chennai Second Masterplan 2026, the FSI limit for ordinary residential buildings in Chennai was set at 1.5 whereas the limit for high-rise buildings was 2. The state government has been preparing for some months and has drafted the detailed guidelines which focused on curtailing the cost of housing across the state.

Developers of large residential projects, rather than owners of small plots looking to build homes, are most likely to benefit with the move to raise the floor space index. They could now construct more units on a plot of land. However, it could put pressure on the civic infrastructure as sewage generated and traffic congestion could increase. But, urban planning experts speak about putting the onus on civic agencies who must develop the required infrastructure. Some developers also opine that relaxation of the setback area is equally important to make the change effective; and also, that those properties developed under joint venture will only see a price hike.

Nevertheless, in other cases, this move proves to be beneficial for homebuyers belonging to the low income and economically weaker sections.