The Maharashtra government has offered to reduce premiums and waive off development cess for two years as it looks to boost the beleaguered real estate sector, according to a report in The Times of India.
Chief Minister Devendra Fadnavis has approved the proposal to waive off development cess that builders pay for additional construction rights and reduce premium on fungible floor space index (FSI) by 10 percent.
Sources told the daily that this will reduce residential real estate project cost by 20 percent and commercial costs by 30 percent.
Engineer Yomesh Rao, while speaking to the daily, said that these concessions may not translate into benefits for homebuyers as flats are already placed at a 10-30 percent discount. But industry experts pointed to the benefits from the proposed reduction in fungible FSI premium. If it is brought down by 15 percent as proposed—from 50 percent to 35 percent--charges will majorly reduce on the amount that government estimates for various locations.
An official directive under MH regional town planning is expected on August 21.