‘Vertical’ relief for Bengaluru builders: Govt notifies premium FAR
Premium FAR of 1.0 times sital area can be utilised only in ‘impact zones’ (Metro, suburban rail, other public infrastructure)
BENGALURU:
In some good news for builders who see their future prospects in terms of Bengaluru’s vertical growth, the state government has notified the facility of premium Floor Area Ratio (FAR) which can be bought by builders on payment of a premium. However, premium FAR will not come cheap as, for example, purchasing 1,000 sq m would mean shelling out Rs 1 crore (depending upon the area-wise guidance value).
The Urban Development Department published the Karnataka Planning Authority (Amendment) Rules, 2020 on June 17, 2021 as required by sub-section (1) of section 74 read with section 18-B of the Karnataka Town and Country Planning Act, 1961 (Karnataka Act 11 of 1963). The rules provide for premium FAR wherever impact zones have been identified for grant of this facility and in any other areas specified for this purpose in the Zonal Regulations of the approved Master Plans in force.
As per the Karnataka Planning Authority (Amendment) Rules, 2021 37-E, premium FAR over and above the ordinarily permissible FAR not exceeding 0.6 times of the permissible FAR may be allowed in a building site abutting a minimum road width of 9 m.
Where premium FAR can be used
As per the government order, the premium FAR can be used only in impact zones of transport infrastructure projects and any other public infrastructure projects within the Local Planning Areas and in other areas of the approved Master Plans.
How premium FAR will be calculated
The concerned authority will have to consider the guidance value of the developed site as the base value while the premium FAR charges shall not be less than 50% of the guidance value of the additional (notional) sital area.
In simple words, suppose the area of the building site is 1,000 sq m (10,000 sq ft) and the allowable FAR is 2.5, the total built-up area will 1000 x 2.5 = 2,500 sq m. Adding premium FAR of 1.0, the additional built-up area becomes 1,000 x 1 =1,000 sq m. As per the guidance value of the building site of Rs 50,000 sq m, the additional (notional) site area to be considered for calculating premium FAR would be 1000/2.5 = 400 sq m. Further, premium FAR charges as per the guidance value of the additional (notional) sital area would be 400 x 50,000 = Rs 2,00,00,000. But premium FAR charges at 50% of value of additional (notional) sital area would be ½ x 2,00,00,000 = Rs 1,00,00,000. This means premium FAR charges per sq m would be 1,00,00,000/1,000 = Rs 10,000. The builder or the person who wants to utilize the premium FAR would end up paying 1,000 sq m x 10,000 = Rs1,00,00,000.
As per the government’s notification, the premium FAR charges collected shall be deposited in a separate Head of Account of the Planning Authority or Local Authority which issues the building plan. The notification adds that 50% of the charges collected shall be utilised for the purpose of acquiring land and shifting of utilities related to the purpose for which FAR is issued, and 50% of the charges collected shall be utilised for developing infrastructure related to the purpose for which FAR is issued.
“In case the agency developing infrastructure is separate from the authority which is collecting the premium FAR charges, then the authority shall transfer this amount to the concerned agency which is developing the infrastructure and is responsible for the activity for which FAR is issued; i.e., in case of suburban rail to the special purpose vehicle (SPV) formed for that purpose, in case of Metro to the company/SPV which is implementing the project, etc,” the order reads.
Also Read: Premium FAR Cleared in Bengaluru; GBA Projects ₹2,000-Crore Annual Revenue for City Corporations
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