Eyeing more revenue, Karnataka passes Bill on premium floor area ratio | Bangalore News – DollarJob

Eyeing more revenue, Karnataka passes Bill on premium floor area ratio | Bangalore News

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In a revenue-generation measure, the Karnataka government has passed a Bill on the premium floor area ratio (FAR), the ratio of the total plot area to the total building area, allowing developers to construct additional built-up area after paying a premium.

The Bill, which was passed amid opposition by BJP legislators on Tuesday, enables local planning authorities to identify areas where premium floor area ratios may be permitted. It will also remove ambiguity in calculating charges for premium ratios, according to the government.

Deputy Chief Minister DK Shivakumar said the premium floor area ratio was already being provided in Mangaluru. The money generated from the premium floor area ratio will help fund developmental activities, he said, noting that around Rs 2,000 crore was thus collected in the coastal city over the past few years. This is now being extended to other cities, he said, piloting the Bill at the Legislative Assembly.

“The BJP government collected money and issued OCs saying premium FARs will be allowed in the future,” he said on Tuesday.

BJP MLA and former chief minister Basavaraj Bommai raised concerns about the Bill, saying that allowing additional floor area ratios without providing adequate infrastructure such as drainage and water supply would only burden the existing system.

Festive offer

According to the Bill, premium charges shall be payable for the additional area of a building at a rate “not less than forty percent of the guidelines value” for the developed land or site at the location where the development of the building is proposed.

“The maximum additional Floor Area Ratio as Premium Floor Area Ratio that may be purchased for a permitted building… shall not exceed 0.6 times or sixty percent of the ordinarily permissible Floor Area Ratio,” the Bill read.

The Bill also aims to streamline the process of issuance and management of the premium floor area ratio using software, while ensuring that the amount collected are utilised to provide for acquisition of land, public infrastructure and specific purposes only within the local planning area.



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