New housing policy: Cluster development model for Mumbai suburbs now

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Mumbai’s suburbs are set for a massive makeover with the state government unveiling a new housing policy paving the way for redevelopment of unsafe tenanted buildings, transit camps and dilapidated MHADA colonies, with a slew of incentives including higher Floor Space Index (FSI).


Several thousand tenanted buildings declared unfit by BMC will now be eligible for FSI up to 3 from 2 at present.
Developers have to provide the Maharashtra Housing and Development Authority (Mhada) with adequate, affordable housing stock under various categories undertaken in redevelopment projects.

The CM said, “Almost 63 per cent of the area of Mumbai and its suburbs come in the category of coastal regulation zone or green belt. As a result, the entire city’s housing concern along with infrastructure has to be confined to 37 per cent available land. It is a daunting task.”

Giving the nod for redevelopment of societies inside 56 Mhada-owned layouts in the suburbs, the government has mandated developers to pay a premium on such properties as compensation to the state housing board for its share.


The policy entails redevelopment of such properties to pay a premium for compensating the state housing board for its share in the surplus area remaining after rehabilitation of existing tenants, and the proportionate sale component.

Fadnavis mentioned how there were 104 layouts within MHADA spread across 1,560 hectares of prime land awaiting redevelopment since 1950-60. But successive governments ignored the concerns of Mumbaikars, he claimed.

Giving the go-ahead to the cluster development model in suburbs on the lines of the one in the island city, Fadnavis emphasised on generating more affordable housing stock. The development up to 2,000 sq mts of plot would be allowed an FSI up to 3. Redevelopment of plots beyond 2,000 sq mts would have an FSI of 4. The cluster development is to ensure wholistic development of housing, complete with civic amenities and infrastructure.

Another decision pertains to redevelopment of 40 transit camps of Mhada across the city housing 22,634 tenants of which almost 8,000 families are unathorised. Fadnavis also announced in situ redevelopment of 50,000 slum dwellers living near the airport. The government has got all permissions from the Centre in this regard, he said.

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