MUMBAI: The Maharashtra government has announced proposed amendments to the Development Control and Promotion Regulations (DCPR) 2034 for Greater Mumbai, aimed at enhancing the feasibility and financial viability of redevelopment schemes under the Maharashtra Housing and Area Development Authority (MHADA).
The proposal comes after MHADA approached the state government, requesting modifications to existing provisions to bolster the viability of its redevelopment projects.
Currently, Regulation 31(3) permits builders to receive extra ‘fungible’ construction area, exempt from premium charges, based solely on the existing built-up area of a project. The government intends to expand this benefit to include the rehabilitation area, allowing developers to utilize additional space while accommodating current tenants, thereby simplifying project execution and improving financial sustainability.
Additionally, under Regulation 33(5), MHADA allows for up to 3.00 floor space index (FSI) of additional construction area at a premium. The proposed amendment stipulates that this increased FSI will be assessed on the total rehabilitation entitlement rather than just the existing area, aiding projects in balancing rehabilitation and sale components more effectively. The urban development department (UDD) emphasized that these changes aim to facilitate redevelopment and enhance the viability of projects, particularly those involving older MHADA layouts.
Industry experts believe that these changes will streamline MHADA redevelopment economics by shielding tenant entitlements from premium charges and aligning fungible benefits with genuine rehabilitation needs. The amendments are expected to activate stalled and complicated MHADA colony redevelopments across Mumbai, especially in large layouts where the aging infrastructure calls for significant replacements.
The UDD has invited public feedback on the proposed changes 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. Interested parties can submit their objections or suggestions within one month.
