What Is Fungible FSI? - Meaning, Area Calculation & Recent Amendments

Table of Content:

1. Fungible FSI: Meaning​
2. Fungible FSI: Limit
3. FSI Calculation: Steps
4. Fungible FSI Premium Calculation
5. Amended Fungible FSI As Per New Development Control Regulations (DCR)

The building construction process involves checking various parameters and adhering to the maximum permitted limits set by the government. One such factor is the Fungible FSI (Floor Space Index). The space covered by all the floors in a building is primarily dependent on the FSI. 

If you want to know more about the meaning of Fungible FSI for redevelopment, and steps for fungible area calculation, this blog is for you!

Fungible FSI: Meaning

Fungible Floor Space Index(FSI) is the extension of development beyond the limit, which increases the built-up area of the structure. It is also called Premium FSI. 

It is a concept that enables developers to add more floors to a building beyond the legally permitted limit set by the government.

Developers purchase the additional space from the local authorities, and it is subject to regulations and payment of premiums. The payment of premiums is calculated based on the Circle Rates or the Ready Reckoner Rates(RRR) of the area. Fungible FSI is subject to regulations and hence, any violations may lead to penalties or legal action.

Here’s why Fungible FSI has gained popularity:

• It allows developers to build additional floors without violating the government's FSI limit.

• It enables them to make the most of the land parcel and generate higher revenues

• It opened up new opportunities for developers to build efficient and larger structures

Suggested Read: What Is Floor Space Index? Meaning, Calculation, And Importance

Fungible FSI: Limit

Fungible FSI limit refers to the maximum floor area that can be constructed by a developer on a given land parcel. 

Fungible FSI limit depends and varies on the basis of the building’s location. The FSI limit determines the built-up area of a building and the built-up area affects the number of floors that can be built on land. 

Here’s the Fungible FSI limit for different types of properties:

Any construction that exceeds the purchased Fungible FSI (floor space index) limit is deemed illegal. The developers may face consequences like hefty fines, imprisonment, or project demolition. 

FSI Calculation: Steps

You need the following details for Fungible area calculation:

1. Total floor or built-up area

2. Total area of the plot of the land 

If you want to know the steps for Fungible FSI calculation, follow these steps:

• Step 1: Keep the total floor or built-up area and plot area handy

• Step 2: Use the below formula to calculate Fungible FSI:

FSI = Total floor or built-up area/Plot area x 100

Factors like road width are considered and used by the Municipal Corporation before deciding the fungible FSI of any locality.

Fungible FSI Premium Calculation

It is important that the road next to the residential property must be minimum 30 feet wide to be eligible for the Fungible FSI. 

Here’s the permissible Fungible FSI as per the road width:

Let us take a Fungible FSI calculation example to understand this better:

Total built-up area = 3000 square feet

Total plot area = 1000 square feet

Width of the adjoining road = 50 feet

FSI = Total floor or built-up area/Plot area x 100 = (3000/1000) x 100

Thus, FSI = 300 percent or 3

So, with a land area of 3,000 square feet, with an Fungible FSI of three and the width of the adjoining road being 50 feet, the builder would be eligible to acquire 30% more floor space as fungible FSI.

Here, the additional built-up area would be 30% more than the floor space that the builder can obtain through the fungible floor space index.

Built-up Area = Total built-up area x FSI = 3,000 square feet x 3 = 9000 square feet

Additional built-up area = Built-up Area x Fungible FSI 

                                      = 9000 square feet x 30/100 = 2700 square feet

Total floor space allowed = 9,000 + 2700 = 11,700 square feet

Here, the builder can construct up to 11,700 square feet of floor space on the plot.

The Fungible FSI in an area varies depending on the type of building and the way its construction is planned.

Amended Fungible FSI As Per New Development Control Regulations (DCR)

Fungible FSI’s concept was amended as per the new Development Control Regulations (DCR) in 2012. As per the amendment:

1. Flower beds, balconies, terraces and niches are included in fungible FSI.

2. The government made a provision for additional built-up space instead of a premium to compensate the builders for the loss.

3. Developers can avail around 25% more parking space over the DCR limit free of cost without being counted in FSI.

4. The Fungible FSI for redevelopment project’s rehab portion is free of premium.

5. The premium levied is a percentage of the Ready Reckoner Rates as follows:

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