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Premium tag to help Bengaluru metro, realtors alike

The Bangalore Metro Rail Corporation (BMRCL), which has been struggling to raise enough funds for its projects on time, is pinning its hopes on the proposed introduction of “premium floor area ratio”. This new fundraising mechanism is expected to fetch about 10% of the estimated Rs 36,000 crore required to fund three phases of the metro network totalling 118 km. Once the premium FAR guidelines (or floor space index) are notified, those who want to build additional floors (more than the permissible floor area ratio or FAR) in places where the metro network will come up have to shell out more money as fee to the government. The fee, to be fixed based on the guidance value of the plot, would go towards funding the metro.

Source : ET Realty