Money collected from builders in Mumbai has funded the coastal road project in the city. The idea to charge builders a premium for extra construction rights, known as fungible FSI, was conceived in 2011 during the tenure of municipal commissioner Subodh Kumar. This new funding mechanism became a game changer for BMC finances as it started generating over Rs 4,000 crore annually. The revenue generated through fungible FSI has been used to improve infrastructure and lay the coastal road. Since 2011, the BMC has generated over Rs 40,000 crore through this mechanism.
Previously, builders would construct additional areas like flowerbeds, garages, and swimming pools attached to individual apartments, charging buyers for these areas with the promise that they would be merged with their flats later. Builders would then seek FSI concessions for these areas from BMC, resulting in the loss of revenue for the corporation every year. However, under the new rules introduced in 2011, builders are allowed fungible FSI, for which they must pay a premium.
Shiv Sena MP Rahul Shewale, who was the BMC standing committee chairperson at the time, played a crucial role in pushing for environmental clearances and reclamation of land for the coastal road. Despite opposition from the Union environment department, reclamation was allowed after discussions with Union environment minister Jairam Ramesh. A committee was set up in June 2011, which submitted its report recommending the coastal road from Marine Drive to Kandivli with 160-hectare reclamation.
The inauguration of the coastal road has marked a significant milestone for Mumbai. The project is expected to bridge the gap between Worli end and the Sea Link, reducing travel time and fuel consumption, and cutting carbon emissions. It is a culmination of a vision that was envisaged 57 years ago but faced delays due to court cases. The coastal road combines an undersea tunnel and 120 acres from the Mahalaxmi racecourse to provide Mumbai’s largest open space.
These developments indicate the successful utilization of funds from the premium charged for fungible FSI in Mumbai’s infrastructure development. The coastal road project stands as a testament to the city’s commitment to enhancing connectivity and improving the lives of its residents.
