Chennai: Real estate developers in Chennai have sought policy clarification from the Chennai Metropolitan Development Authority (CMDA) regarding the applicability of concessional Premium Floor Space Index (FSI) charges under the city’s Transit-Oriented Development (TOD) policy. Developers say the lack of clarity over eligibility is delaying project approvals and creating uncertainty for ongoing and upcoming developments.
The request has been submitted by Credai Chennai, which has asked CMDA to clarify whether projects with only a portion of their land falling within 500 metres of an existing, under-construction, or proposed metro corridor can avail the concession on Premium FSI charges.
According to S. Sridharan, Executive Committee Member of Credai National, a project should qualify for the concession if any part of its site falls within the prescribed 500-metre influence zone. He stated that it should not be necessary for the entire land parcel to lie within the designated area to receive the benefit.
The issue stems from a government order issued in August 2022, which allows projects located within 500 metres of metro rail corridors to pay Premium FSI charges at 50% of the applicable rate. The policy was introduced to promote higher-density development around public transport corridors and encourage greater use of metro services.
However, developers say the policy is being interpreted differently in various cases. For larger developments, only a portion of the site may fall within the 500-metre zone. In some instances, authorities have extended the concession only to the eligible portion of the land, while in others, the benefit has reportedly been denied if the project’s road frontage or primary access lies outside the specified limit.
Credai Chennai has highlighted that these varying interpretations have resulted in repeated queries from planning authorities, delays in obtaining approvals, and uncertainty for residential, commercial, and mixed-use projects planned along metro corridors.
The developers’ association has also requested CMDA to ensure that the concession is not denied solely because a project’s road frontage or access point is outside the 500-metre boundary. Additionally, it has urged the authority to apply the clarification to pending, future, and revised planning applications where final approval orders have not yet been issued.
Developers believe that a uniform interpretation of the TOD regulations will streamline the approval process, reduce delays, and support the policy’s objective of encouraging development around Chennai’s expanding metro network.
