Mumbai Govt Announces Extra FSI, TDR Incentives To Unlock Redevelopment In Defence And Protected Zones

December 22, 2025: In a bid to revive long-stalled redevelopment projects in Mumbai’s defence and protected areas, the Maharashtra government has announced additional incentive Floor Space Index (FSI) and Transfer of Development Rights (TDR) for old and dilapidated buildings located on such lands. Chief Minister Devendra Fadnavis announced in the legislative assembly, calling it a key step towards strengthening the city’s housing stock under the proposed Housing for All policy.

Several neighbourhoods, including areas around the Juhu Military Transmission Station and the Central Ordnance Depot in Kandivali-Malad, have faced redevelopment hurdles for decades due to strict height restrictions imposed by high-frequency radar installations. These constraints rendered many redevelopment proposals financially unviable.

Addressing concerns raised by legislators, Fadnavis said the new policy framework would make redevelopment feasible in such restricted zones. “Under this, redevelopment will be encouraged by offering free FSI up to 300 sq ft for economically weaker sections and 600 sq ft for low-income group beneficiaries,” he said.

Explaining further, the chief minister added, “By providing incentive FSI, the rehab component will be covered for builders while protecting the basic FSI rights of original landowners. Any unconsumed FSI will be allowed to be converted into a transfer of development rights (TDR), enabling builders to raise funds for the projects. The existing incentives and premium benefits under the relevant development regulations will continue.”

Fadnavis also outlined progress on relocating radar installations that have constrained redevelopment. On Dahisar, he said, “The Union Ministry of Civil Aviation and the Airports Authority of India have agreed to this. The state government has agreed to bear the relocation cost and provide alternative land free of cost. Fifty percent of the AAI land at Dahisar will be made available for public use.”

Regarding the Juhu radar, he noted, “The government has proposed an alternative site for it, which was currently under technical evaluation by AAI. Once the technical study is completed and the site is finalised, the approval process for shifting the Juhu radar will begin.”

Residents of Juhu, many of whom have been affected by redevelopment freezes since defence-related restrictions were reinforced in 2010, have long demanded relief. The new incentive-led approach, combined with the planned relocation of radar centres, is expected to finally unblock redevelopment, expand housing supply and improve urban planning in some of Mumbai’s most constrained zones.

Source: The Realty Today

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