Introduction

When the Maharashtra government provided further information on the introduction of the newly approved real estate incentive. The State Urban Department legacy department clarified that premiums offered by the previous government will remain in effect until August 2021.

By this move expected to allow more developers to take advantage of the concessional premiums. And demonstrate a rise in the number of developers who want approval for construction projects in Mumbai during the first 8 months of 2021.

The above line stated that builders in the city have to settle up with a premium to the additional floor space index (FSI) and compensatory FSI. These premiums only need to be paid at approx 17%  of the appropriate ready reckoner (RR) rates. These premiums are only for residential sector projects and are valid till the date August 19, 2020. Commercial developers must have to pay premiums at 20% of the RR rate. (“RR” also known as “Circle Rate”). 

Additionally, the premiums for developers opting to obtain a concession. These concession will be calculated based on existing circle rates or previous year rates i.e, 2019-20 rates. Hence, the real estate construction projects in Mumbai will be suitable for higher concession fees in comparison to the entire Maharashtra. But this benefit is discontinued after August 19. 2021. 

Uddhav Thackeray addresses meeting with the State Cabinet Infrastructure Committee.

This was recently announced by Chief Minister Uddhav Thackeray, he announced several strategies to reduce construction costs all over Maharashtra. The government has reduced the construction premium applied to new projects in the state to 50% by December 31, 2021.

Chief Minister Uddav Thackeray also addresses a meeting with the Infrastructure Committee of the State Cabinet. He discuss a wide range of infrastructure projects in Maharashtra. With several other officials, Deputy CM Ajit Pawar and PWD Minister Ashok Chavan also attended the meeting.