Mumbai, also known as the maximum city has thousands of people pouring in every day. While the population increases exponentially, the city has a limited geography to deal with. That's where land laws and Development Control Regulations (DCR) play a vital role.

DCR is a set of rules that are intended to guarantee the best possible and effective development of a city and its land. This includes the development of new structures, the augmentation of the current ones, and the difference in utilization of the structure or land to utilization. Growing new houses/mechanical structures/shops are significant for supporting monetary advancement. Simultaneously, it is likewise important to ensure or improve the nature of towns, towns, open country, and so forth.

Motive of the Development Control Regulations (DCR):

It is basic that development rules influence the general texture and character of a city. Thus, to intensify the development of a city, such regulations ought to satisfy the open intrigue and general government assistance of the network and ought to be sufficiently equipped to fulfil the essential needs of the open, for example, wellbeing, security, accommodation, economy and enhancement.

DCR is an unquestionable requirement for each developing city in light of the fact that the zone promptly past as far as possible is regularly a wellspring of wellbeing danger to the city and by and large under no severe control of the successful neighbourhood authority.

Key provisions of DCPR 2034:

The previous development plan (1991 DP) has been in force for nearly three decades. The policies were revised several times to address the housing problems of people living in slums, cessed buildings and MHADA societies, through redevelopment. If we look at the progress achieved on the redevelopment front, the record has not been very impressive, the Knight Frank's report titled 'DCPR 2034 – Deciphering Mumbai's Future' noted.

Hence, necessitates the need for development policies to be framed so as to promote redevelopment of slums, MHADA colonies, and cessed buildings in a sustainable way, as well as to witness meaningful, on ground changes.

Some of the key DCPR 2034 provisions impacting the residential segment are as follows:

  1. The DCPR 2034 facilitates construction of taller buildings by linking permissible floor space index (FSI) to road width. Past policies have been limited in checking congestion, leading to construction of tall residential/ commercial towers, on narrow roads.
  2. Another provision is the increase in FSI through increase in Transfer of Development Rights (TDR) limits. This increase in FSI stems from an increase in FSI upon payment of premium and the increase in the quantum of TDR that can be loaded on the plot, thereby increasing revenue generation for government and the municipal corporations.
  3. The DCPR 2034 has increased development rights for area surrendered to the BMC. This was increased to 2.5 times the area of land surrendered in the island city and 2 times the area of land surrendered in the suburbs thereby incentivizing stakeholders to accelerate the process of slum rehabilitation and surrendering of reserved plots.
  4. Another welcome provision is the reduction of consent requirement for redevelopment of cessed and MHADA buildings from 70% to 51%. While this reduction may not entirely address the issue of redevelopment projects stuck in the litigation quagmire, it certainly helps in commencing projects having a majority consent of home-owners.

Some of the key DCPR 2034 provisions impacting the commercial segment are as follows:

  1. If the road width is greater than 12 metres, then the DCPR 2034 provides higher FSI for office developments. The idea behind this is to reduce traffic congestion around commercial complexes since the frequency and number of vehicles moving in and out of commercial spaces throughout the day is higher than residential spaces.
  2. The DCPR 2034 aims to create 8 million jobs in Mumbai by increasing the supply of office spaces. The additional FSI is aimed at incentivising commercial development, over residential development, which can be purchased from the BMC, by paying a premium at the rate of 50% the Annual Schedule of Rates (ASR). However, the current set of incentives in the form of additional FSI, may not sufficiently promote office developments, to the extent required.

The release of DCPR 2034 has thrown light over the future development of Mumbai. While the current DCPR 2034 is a welcome move and a step in the right direction, there exist certain challenges with respect to implementation. For starters, the high cost of FSI could be a major roadblock for smaller businesses. On the other hand, promotion of affordable housing may prove to be a boon for home buyers. Overall, the current DCPR 2034 rules paints an optimistic scenario by offering something to all stakeholders, but time will tell how effective the rules are in addressing current challenges and incentivising development in a land-strapped city.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.