The Maharashtra government will now grant four on the floor space index (FSI) to railways’ 11-acre plot in Bandra, instead of two. However, the railways will have to invest the additional revenue generated due to extra FSI in its projects in the state only.
Floor Space Index (FSI) is the ratio of the total floor area of buildings to the size of the plots.
According to a letter received by Chief Minister Vilasrao Deshmukh’s office from Railway Minister Lalu Prasad, the ministry has agreed to use two-thirds of the extra revenue for projects under Mumbai Urban Transport Projects (MUTP)-II and the rest for its projects in the rest of the state.
When contacted, the secretary of the state urban development ministry, TC Benjamin, confirmed the letter being received from the railway minister, accepting the state government’s condition for grant of 4 FSI for the plot.
In May, the railways had invited bids for the Bandra plot with a reserve price of Rs 1,750 crore. However, it received lukewarm response from major real estate players due to a slowdown in the real estate sector. Subsequently, the railway ministry made a representation for grant of higher FSI for the plot.
The railways and the state government had been contending over the use of higher revenue generated due to grant of additional FSI. While the railway ministry was insisting on using the old formula of dividing the revenue equally between Mumbai urban transport projects, projects in the rest of Maharashtra and the projects in the rest of the country, the state government wanted the entire revenue generated due to extra FSI to be invested in the state only.
MUTP-II is a Rs 4,510-crore project to augment the capacity of suburban railway networks. It consists of putting up additional lines between Kurla and CST, and Thane and Diva on the Central Railway, and Borivali and Mumbai Central on the western line. This will help segregate suburban and long-distance traffic and increase frequency of suburban trains.
