Real estate developers in Chennai have urged the Chennai Metropolitan Development Authority (CMDA) to clarify how the concessional Premium Floor Space Index charges should be applied to properties that fall only partly within 500 metres of a Metro Rail corridor.
The concern has been raised by developers and CREDAI after uncertainty emerged over the interpretation of Tamil Nadu’s Transit-Oriented Development policy.
Industry representatives say the lack of a clear and uniform rule is affecting planning applications for large development sites located along Metro corridors.
What Does the Existing Rule Provide?
In August 2022, the Tamil Nadu government amended the Tamil Nadu Combined Development and Building Rules, 2019, to encourage higher-density development near public transport corridors.
Under Section 30(5) in Tamil Nadu Combined Development and Building Rules, 2019,
Transit Oriented Development areas. – (i) In order to encourage Transit sensitive activities and to allow identifications in any mass rapid transit system in the state, the Govt. may prescribe such regulations, including premium FSI at concession rates as may be necessary from time to time.
(ii)In case of Metro Rail Corridors, Existing and Proposed properties located within a distance of 500m measured from the centre line of the corridor, Premium FSI shall be charged at 50 % of the normal Premium FSI rate.
Premium FSI allows developers to construct additional floor area beyond the normally permitted FSI by paying a prescribed charge to the planning authority.
The concession of 50% on the normal premium FSI rate, was introduced to encourage Transit-Oriented Development, improve access to mass transport and reduce dependence on private vehicles.
How Is the 500-Metre Distance Calculated?
The notification states that the distance must be measured from the centre line of the Metro Rail corridor, rather than only from a Metro station.
A property must therefore be assessed based on its distance from the alignment of the eligible Metro corridor.
Where Does the Confusion Arise?
The main issue concerns large plots where only a portion of the property falls within the prescribed 500-metre distance.
For example, one section of a project site may be located within 500 metres of the Metro corridor, while the remaining land, entrance or road frontage may fall outside the boundary.
The existing notification does not clearly explain whether:
- The Premium FSI concession should apply to the entire project site;
- It should apply only to the portion falling within 500 metres; or
- The project should be denied the benefit when its entrance or road access is outside the eligible zone.
This lack of clarity has reportedly resulted in different interpretations while processing planning-permission applications.
Developers claim that some applications receive the concession only for the portion of land within 500 metres, while others may be denied the benefit because the access or frontage is outside the zone. This uncertainty is reportedly causing repeated queries and planning-permission delays
What Are CREDAI and Developers Asking CMDA?
CREDAI and Chennai developers have asked CMDA to issue a formal clarification stating how partially covered properties should be treated.
CREDAI Chennai reportedly wants CMDA to confirm that:
- Different CMDA officials should not interpret the same rule differently.
- If the 500-metre boundary touches any part of the project site, the entire project should qualify for the Premium FSI concession.
- The concession should not be denied merely because the project’s road frontage, entrance or access road lies outside the 500-metre zone.
- The clarification should apply uniformly to pending, revised and future planning applications.
Developers have also sought confirmation that eligibility should not be rejected merely because the site entrance, frontage or access road falls outside the prescribed distance.
A uniform clarification, they argue, would prevent inconsistent decisions, reduce repeated queries and avoid delays in obtaining planning permission.
Why the Clarification Matters
Premium FSI charges can form a significant part of a project’s development cost. Whether the 50% concession applies to the whole property or only a part of it can therefore materially affect the financial feasibility and design of a project.
A clear rule is also important because Chennai Metro Phase II and other proposed corridors pass through several areas with large residential, commercial and mixed-use development sites.
Developers may hesitate to plan higher-density projects near these corridors if eligibility for the concession remains uncertain.
CMDA Clarification Awaited
The 2022 rule clearly grants reduced Premium FSI charges to eligible properties within 500 metres of Metro corridors. However, it does not expressly address properties that cross the 500-metre boundary.
Until CMDA issues a written clarification, such projects may continue to be assessed on a case-by-case basis.
A clear and consistent interpretation would help developers understand their eligibility while ensuring that the original objective of promoting planned, transit-oriented growth around Chennai’s Metro network is properly implemented.
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