Unlimited FSI In Hyd Undesirable

Authorities must plan for a certain capacity, and then ensure that the density in the surrounding areas does not increase, otherwise the system will be loaded causing breakdowns and scarcity

In everyday discussions, those of us who have visited foreign countries, can’t help, but talk about the stark difference between the large international cities and their Indian counterparts. The one most visible difference is in building heights, and we wonder why it is that cities such as New York or Chicago have such tall skyscrapers, which few of our Indian cities have just started building. The answer lies in the regulatory framework, in most of the Indian cities, there is restriction on floor space to be built on a plot of land called Floor Space Index, translating into low heighted buildings, as India is home to a large population.

While this is a dampening piece of information for the adventurous souls amongst us, we need to understand the need for these regulations. Imagine a hypothetical city, where there is no restriction of any kind. The logic of being in the city would mean people would want to be as close as possible to each other, to be able to reap the benefits of connecting better, exchanging information, striking deals, and doing transactions at low costs. In the literature, these benefits are called agglomeration economies, the very reason for cities to exist. Agglomeration benefits are not just a theoretical idea, we see them in play in our cities. When we see crowded bazaars in Chandni Chowk in Delhi, or all commercial establishments in Fort area in Mumbai, we realize that the reason for economic success of these places is the ease of connecting for the businesses and being close to each other.

Given a choice, private economic agents demanding floor spaces, i.e. businesses, residents, etc., would want to be as close as possible to the city centre. Developers will follow demand, and therefore we will see tall buildings in the city centre. So far, there is nothing that sounds objectionable. However, while constructing these tall buildings, developers will not be concerned about the high population density that would result in the city centre and cause a burden on the infrastructure. Roads are to be provided by the public authorities, as are the other services such as water supply and sewage. Municipal authorities must plan for these in advance, and the basic principle of planning says that these cannot be planned for an infinite population. Authorities must plan for a certain capacity, and then ensure that the density in the surrounding areas does not increase, otherwise the system will be loaded causing breakdowns and scarcity.

Therefore, a certain FSI limit is justifiable to be put in place by the urban planners to begin with.

In Hyderabad, the discussion is about current unlimited FSI, or in other words, having no constraint over FSI. That would mean the supply of floor space will follow the demand, and high rises will be constructed in areas where people and businesses want to be. The success of such an arrangement requires planners to plan for infrastructure, roads, and water in those locations. This is a dynamic equilibrium. Once development takes place, infrastructure can’t follow, since the grids and networks are to be put in place before the development happens on ground. Hence, having a certain FSI restriction as an upper cap is desirable.

What is required therefore, is an approach, where urban planners consider the existing demand for floor space at a location, and plan for the infrastructure capacity accordingly. FSI restrictions, as an upper cap can ensure that the matching happens.

We need to start appreciating that FSI is a regulatory tool, facilitating planned development. It must be in place, in a balanced way. While extremely low FSI starves the markets for space, and results in squatter settlements and illegal constructions, uncontrolled FSI would mean pressure on infrastructure and haphazard development. It is a knife-edge balance, which our planners must strive to achieve. Market friendliness does not necessarily come from getting out of the way totally. It must come from helping the markets grow in a balanced way, by providing them with infrastructural support as required.

(The author is an associate professor at CEPT University, Ahmedabad)