Metro line in Bengaluru under construction
Credit: DH Photo
Bengaluru: The Karnataka government is considering allowing properties located along Namma Metro’s upcoming lines to construct additional floors by paying a fee, which will be used to fund the cost-intensive project that is imperative to decongest Bengaluru.
According to one estimate, the Bengaluru Metro Rail Corporation can generate at least Rs 1,300 crore through various ‘value capture’ financing options, including additional floor area ratio (FAR).
FAR is the ratio of the total plot area to the total building area, and is usually determined by the size of the plot and width of the road in front of it.
“Going forward, we are making major investments in the Bengaluru metro. Phase 3 and 3A together are likely to cost Rs 42,000 crore, about 65- 70% of which will have to be borne by the state government and the BMRCL,” Additional Chief Secretary (Finance) L K Atheeq said. “There is, therefore, a need to look at resource mobilisation options. A policy proposal to provide additional floor area ratio (FAR) for Metro Phase 3 and 3A is one such option that is under consideration,” he said.
The Metro Phase 3 (JP Nagar-Kempapura and Hosahalli-Kadabagere) is estimated to cost Rs 15,611 crore and should be operational by 2029. Authorities expect a cost overrun of Rs 4,000-5,000 crore.
The Metro Phase 3A (Sarjapur-Hebbal) could cost Rs 26,405 crore. The detailed project report (DPR) is being assessed by the finance department.
According to government sources, the plan is to allow additional FAR in the ‘impact zone’ of the Phase 3 and Phase 3A. “The impact zone will be between 300 and 500 metres on either side of the metro line,” a source with direct knowledge of the additional FAR proposal said.
“If the permissible FAR is two, then properties will be allowed to go up to three. The additional FAR will be charged. Metro investments are huge. So, additional FAR money will be used to fund the project,” the source added.
The plan to provide an additional FAR in the impact zones of Namma Metro was floated when IAS officer Pradeep Singh Kharola managed the Namma Metro between 2013 and 2017. However, it did not take off then.
Now, additional FAR for metro is being actively considered alongside premium FAR in the real estate sector and a vehicle parking policy to fund infrastructure development in Bengaluru.
The government wants to allow builders to load an extra 40% on top of the permissible FAR by paying 40% of the guidance value. With Governor Thaawarchand Gehlot not clearing a Bill on premium FAR passed in February, the government has drafted new rules under an existing law to promote vertical growth in the real estate sector.