The importance of Mumbai to Maharashtra’s business and economy cannot be overstated. The Mumbai Development Control and Promotion Regulation Plan 2034 (DCPR), unveiled by the state government, has several positives, but implementation of some of the objectives will be a challenge, according to a Knight Frank analysis.
The DCPR removes uncertainty — for example, aligning the definition of carpet area with the Real Estate (Regulation and Development) Act — in several areas. In residential areas, the government is opening up of land for affordable housing, which will be helpful.
The DCPR also boosts the development of the commercial sector by incentivising FSI. Linking FSI to road width will help reduce congestion and traffic jams around commercial buildings. Additionally, the government and the municipal corporation will also earn revenue from selling this premium FSI.
But the high cost of this FSI will prove to be a challenge, the report said. The FSI for commercial development is higher than residential for road width greater than 1 metre, but the additional FSI comes at a premium of 50 per cent to the annual schedule of rates (ASR). In any case, the Knight Frank analysis shows, the current set of incentives is not enough to sufficiently promote office developments. This is the same challenge that will be faced in the development of Smart Fintech Centres as well.
Similarly, the DCPR’s ‘one size fits all’ model for framing policies will not boost the pace of slum rehabilitation, the analysis said. In the past 20 years, only 1 lakh slums have been rehabilitated and the pace is not going to increase. The primary reason for the failure of the earlier policy was lack of understanding of market conditions and the DCPR carries forward the same set of mistakes, it added.
Moreover, the step of reducing the minimum irrevocable consent required for redevelopment of cessed and Maharashtra Housing and Area Development Authority (MHADA) buildings from 70 per cent to 50 per cent will not help much. That’s because the redevelopment of buildings under these categories is stuck due to other reasons, hence, reducing consent may not completely help addressing the issue, the report added.