The Urban Development Department (UDD) has issued a significant notification dated August 20, 2024, that impacts the Dharavi Redevelopment Project (DRP). This notification modifies the Development Control and Promotion Regulations (DCPR) 2034, specifically focusing on the Dharavi Notified Area (DNA). The changes address the premium on Fungible Compensatory Area for both the rehabilitation and free sale components of the project.
Key Regulations in Focus
- Regulation 33(9)(A): This regulation now includes provisions for the Dharavi Redevelopment Project (DRP) within the Dharavi Notified Area (DNA). The aim is to foster urban renewal and facilitate the redevelopment of Dharavi, one of Asia’s largest slums.
- Regulation 33(10)(A): Pertains to the Slum Rehabilitation Scheme within the DNA, specifically for the DRP. This regulation outlines the framework for slum rehabilitation, ensuring that the residents of Dharavi benefit from the redevelopment project.
- Regulation 31(3): Focuses on the Fungible Compensatory Area, which refers to additional Floor Space Index (FSI) that developers can utilize. Previously, this area came with a premium cost.
Key Decisions and Modifications
During a government meeting held on December 19, 2019, various issues related to the DRP were discussed. One significant outcome was the decision to exempt the premium payable on Fungible FSI for the DRP. This exemption aims to accelerate the progress of the DRP, which has been slower than anticipated.
To encourage the redevelopment, the government has decided that the Fungible Compensatory Area will be granted without charging a premium. This exemption applies to both rehabilitation and free sale components under Regulation 33(9)(A) and Regulation 33(10)(A) of the DCPR 2034. Furthermore, it was deemed necessary to modify Regulation 31(3) to reflect this change. The notification includes a new proviso in Regulation 31(3), stating:
“Provided further that in case of redevelopment under Regulation 33(9)(A) and 33(10)(A), the Fungible Compensatory Area admissible on rehabilitation as well as on free sale Component shall be granted without charging premium.”
Conclusion
This notification marks a crucial step in the Dharavi Redevelopment Project, providing financial relief for developers and ensuring that redevelopment efforts are accelerated. By eliminating the premium on Fungible Compensatory Area, the government is addressing the slow progress of redevelopment and fostering a more favorable environment for urban renewal in one of Mumbai’s most densely populated areas.