MUMBAI: The Maharashtra government has proposed amendments to the Greater Mumbai Development Control and Promotion Regulations (DCPR) 2034 to make redevelopment programs under the Maharashtra Housing and Area Development Authority (MHADA) more feasible and financially viable.
The move follows a proposal from MHADA which had written to the state government seeking amendments to these provisions to improve the viability of redevelopment projects undertaken under the MHADA housing projects.
Currently, Regulation 31(3) allows builders to obtain free additional ‘fungible’ construction area, only on the existing built area of a project. The government now wants to extend this benefit to the rehabilitation area as well. This allows developers to use additional space while rehousing existing tenants, making such projects easier to implement and more financially sustainable.
Similarly, MHADA currently allows additional building area of up to 3.00 Floor Area Index (FSI) under Regulation 33(5) by charging a premium. The proposed amendment clarifies that this additional FSI will be calculated on the total right of rehabilitation, and not just on the existing area, allowing projects to balance the renovation and sales components more efficiently. The Urban Development Department (UDD) in its notification said these changes are aimed at facilitating redevelopment by improving the viability of projects, especially those involving large and old MHADA layouts.
According to industry experts, this move streamlines the economics of MHADA redevelopment by shielding tenants’ rights from premium burdens and aligning fungible benefits with actual rehabilitation needs. The changes are expected to unlock stalled and complex redevelopments of MHADA colonies in Mumbai, including large layouts where aging stock needs to be replaced on a large scale. The State UDD has invited objections and suggestions from the public on the proposed amendment to regulation 31 (3) and sub-clause 2.1 (C) of regulation 33 (5) under section 37 (1AA) of the Maharashtra Regional and Town Planning (MRTP) Act, 1966.
The government has invited citizens and stakeholders to submit objections or suggestions within one month.
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