1 day ago
BMC Proposes Premium For Redeveloping Civic Tenanted Properties
Mumbai’s civic body wants to make it easier to rebuild old buildings that it owns and rents to tenants.
It is proposing a one-time payment for builders who receive extra construction rights, called FSI.
The payment would be 5% for homes and 10% for non-residential buildings.
The proposal was approved by a civic committee in June 2026.
It is expected to go to the BMC’s general body for final approval this week.
Officials say one standard rule could reduce uncertainty and help delayed projects move forward.
They also say the policy could bring more money to the BMC.
About 46,563 tenants live in BMC properties, although the article’s residential and non-residential figures add up to a slightly different total.
The BMC has proposed a one-time premium on additional FSI for redevelopment of municipally owned tenanted properties.
The proposed charge is 5% of Ready Reckoner value for residential development and 10% for non-residential use.
The policy would standardize premiums for rehabilitation incentives, incentive FSI and scheme amalgamation under DCPR 2034.
The proposal would cover hybrid municipal-private schemes, transferred rehabilitation obligations and tenant relocation to private land.
BMC properties house around 46,563 tenants, mostly in structures that are more than 50 years old.
- Who
- The Brihanmumbai Municipal Corporation and tenants of its municipally owned properties.
- What
- The BMC has proposed a one-time premium on additional FSI for redevelopment projects.
- Where
- Mumbai, Maharashtra, in BMC-owned properties.
- When
- The proposal was approved by the Improvement Committee in June 2026 and was expected before the civic general body during the week of September 22, 2026.
- Why
- To standardize charges, support tenant rehabilitation, accelerate long-pending redevelopment and generate additional BMC revenue.
Key facts
- Residential premium
- 5% of the Ready Reckoner value
- Non-residential premium
- 10% of the Ready Reckoner value
- Covered regulations
- Rehabilitation incentives, incentive FSI and scheme amalgamation under DCPR 2034
- Estimated BMC tenants
- Around 46,563
- Residential occupants listed
- 42,060
- Non-residential occupants listed
- 4,505
- Approval status
- Approved by the Improvement Committee in June; pending consideration by the civic general body
Sources
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