NEW GROWTH AVENUES

Padma Ramakrishnan
The Economic Times (Mumbai edition)

In a bid to develop Mumbai as a financial hub, the state government has in a pragmatic policy change allowed all upcoming IT parks and IT-specific buildings in the city to utilise 80 per cent of the total constructed area for financial services, besides IT and IT-enabled services (ITeS). At present, only 30% of the total constructed area can be given to financial services.

IT parks enjoy double FSI, where developers can, by paying a premium of 25% of applicable land value as per stamp duty reckoner rates, enjoy double the plot area, rather than spending twice the amount. By taking this forward looking step, the government is allowing for creating more world-class office spaces.

Experts say the IT sector per se needs cheaper buildings in the outskirts. In Mumbai the IT and ITES companies were finding the lease rentals high and hence these parks were finding it difficult to get occupiers. IT park occupants cannot afford lease rentals of Rs200/250. The BPOs and software companies can at most afford about Rs 40-60 per sqft while top-end companies can pay around Rs 80-100 per sqft.