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Explained: The Process of Premium FSI Charges Calculation

Blox Social
Posted on
Oct 27, 2023

When it comes to real estate and urban planning, understanding the Floor Space Index (FSI) is like grasping the fundamental language of construction and development. Today, we are going to learn more about this term, its intricacies, premium FSI charges calculation method, and the significant impact that it can have on urban landscapes.

What is FSI?

FSI, the acronym for Floor Space Index, also known as Floor Area Ratio (FAR), represents the ratio between the floor area of a building and the total area of the land it is constructed on. Floor Space Index is regulated by the municipal or local authorities under the governance of State Governments. These regulations are based on the National Building Code and specify the maximum floor area that is allowed on a piece of land.

The Floor Area Ratio varies from city to city and is determined by taking several factors into consideration. Some of the most important ones are the plot size, type of construction (commercial or residential), and proximity to roads. Also, it must be noted that the construction bylaws in different towns and municipalities specify the FSI values for each region.

How to Calculate Floor Space Index?

To determine the Floor Space Index (FSI), the total floor area of each level and the entire land plot area are necessary. Here is the formula:

FSI = Total floor area of each level / Total plot area.

For example, if your plot is 1000 sq. ft. and you plan to build a 3000 sq. ft. structure, the FSI would be 3 (3000/1000). Local authorities set the permissible FSI in their areas, influencing the total floor area. If FSI is 1.5 and the plot area is 1000 sq. ft., the total floor area becomes 1500 sq. ft., distributed over different floor configurations.

The Significance of FSI

FSI plays a crucial role in determining the land value within specific localities. It defines the usable land area and regulates the possibility of constructing multi-storey buildings on that land. Notably, FSI values may vary across areas and even differ based on the number of floors allowed for individual buildings.

Having predefined FSI values can ensure consistent city planning and development. It also ensures disciplined construction across sectors, such as railway stations, commercial, and residential areas. Moreover, it will also make sure that these developments adhere to designated timelines. This systematic approach creates a clear differentiation between constructed spaces and open areas. Not to mention, it will also avoid unauthorized constructions.

For builders, a higher FSI translates to the ability to construct more, thus enhancing their sales potential. This, in turn, promotes affordability, especially in regions where there is an urgent need for housing. On the other hand, a lower FSI limits the construction area on a given plot. It is important to abide by the FSI guidelines, which not only streamline the construction process but also exempt builders from any confusion.

What is Premium FSI?

Premium FSI refers to the increase in allowable Floor Space Index (FSI), applicable when a property is adjacent to a road, and the adjoining road is at least 30 feet wide. In cases where municipal regulations permit a lower FSI, it can be expanded by paying extra fees to the local authority.

Let us understand the premium FSI charges calculation method with the help of an example. For instance, if a road next to a plot is 30-40 feet wide, a 20% premium FSI allows construction beyond the standard limit. Similarly, a 30-60 feet wide road grants a 30% premium, while over 60 feet results in a 40% premium.

For example, if a plot's total construction area is 2000 sq. ft. with a 30-feet wide roadside length and a normal FSI of 1.5, a 20% premium FSI would enable an additional 600 square feet of construction.


Understanding the concept of FSI and knowing the premium FSI charges calculation method is essential for anyone who is involved in real estate and even in the construction industry. FSI not only influences land value but also shapes how cities grow in the coming years. With organized construction, well-maintained open spaces, and no unauthorized buildings, cities can flourish and offer many more opportunities to their residents.