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Land in Mumbai: What is the future? 
 
A recent news regarding opening of 5,300 acres of salt pan land for development in Mumbai 
attracted attention of a large number of people. As land is at the centre stage in this financial capital 
of the country, any decision in this regard affects not only the populace but also the very basis of 
city’s ecosystem. Hence, this article focuses on educating readers on landscape of this keenly 
watched global metropolis.  
The city of Mumbai is situated on a landmass originally composed of seven islets which have been 
joined through drainage and reclamation projects to form the landmass called Mumbai Island. It 
mostly consists of a low‐lying plain and ridges. As compared to other cities in the Konkan region off 
western coast of India, the natural beauty of Mumbai is unparalleled. The Mumbai Metropolitan 
Region (MMR) is located in the tropical zome and covers an area of 600.71 square kilometres. The 
area is about 10 to 15 meters above the region’s mean sea level.  
What the landmass consists of? 
Mumbai, which was called Bombay during the British colonial period, is located on a peninsula of 
Salsette Island. The metro area, which was originally seven islands, is joined as one island by fill 
removed from hilltops. The landmass of the MMR mostly consists of the following:  
1. Agricultural land 
2. Non‐agricultural land 
3. Forest land 
4. Wastelands (Salt affected land; Gullied/Eroded land, Water logged areas, Undulating upland, 
with/without scrubs, Sandy area, Rocky outcrops.) 
5. Coastal wetland (Tidal/Mudflats, Saltpans, Vegetated, Non‐Vegetated.) 
6. Hills 
Land is a natural resource that cannot be created. God is accepted as the sole owner of the land and 
Government  as  its  administrator.  Other  than  personal  ownership  of  land,  a  land  pool  used  for 
welfare  of  general  public  is  administered  by  the  government.  In  Mumbai,  the  total  area  of  land 
owned  by  the  government  is  467.81  sq  km  which  consists  of  industry,  agriculture,  plantation, 
airport/harbour, beach/gruynes, dense forest, sparce land, scrub land, rucky outcrop, coast wetland, 
water  bodies  etc.  Out  of  this,  247.31  sq  km  is  developable  area  while  220.5  sq  km  area  is  non‐
developable.  
Where from required land parcel come? 
Day after day, the population of Mumbai is swelling alarmingly. All those shifting to this mega city 
require a place to reside and the city has already exploited beyond its available land space. Then, 
where this space will come from? How is it possible? 
Conversion of land use is seen as the answer to above questions. Here, we are stating the procedure 
for conversion of use of land from one purpose to another.
If an occupant of land (a) which is held for the purpose of agriculture, wishes to use it for a non‐
agricultural purpose, or (b) if land is held for a particular non‐agricultural purpose, wishes to use it 
for another non‐agricultural purpose, or (c) desires to use it for the same non‐agricultural purpose 
for which it is assessed but in relaxation of any of the conditions imposed at the time of grant of land 
or  permission  for  such  non‐agricultural  purpose,  such  occupant  shall  apply  to  the  Collector  for 
permission in accordance with the form prescribed.  
New Development Control Rules (DCR) 
A person regularly deals with real estate sector directly or directly. He often comes across concepts 
such  as  Floor  Space  Index  (FSI)  and  Transferable  Development  Rights  (TDR).  These  concepts  are 
explained in the Development Control Regulations for Greater Bombay, 1991. These Regulations are 
applicable only for the City and suburbs of Mumbai. 
The FSI has been defined to mean the quotient of the ratio of the combined gross floor area of all 
floors in a building to the total area of the plot. The FSI denotes the total constructed area which is 
possible on a given plot of land. For instance, if the area of a plot of land is 100 square metres and 
the prevailing FSI quotient for that area is 1.33, then the total possible constructed area on that plot 
would be 1,330 square metres. 
The FSI is the most important component of real estate development as it signifies the amount of 
construction which is possible on a given plot of land. Under the DCR, different FSI quotients have 
been  specified  for  different  parts  of  Mumbai  divided  into  zones  such  as  residential,  commercial, 
industrial,  educational  etc.  The  maximum  permissible  FSI  earmarked  for  some  of  the  areas  in 
Mumbai are given below. 
 
Number  Area and type of occupancy  FSI permissible 
1  Residential and Commercial Zone 
a) South Mumbai to Mahim  
b) Suburbs 
 
1.33 
1.5 
2  Service Industrial Zone                1.5 
3  Institutional Buildings 
a) South Mumbai to Mahim 
b) Suburbs 
 
1.33 
1.5 
 
In the following cases, certain additional FSI is allowed:  
Road widening and construction of new roads: BMC would allow additional FSI on 100% of the area 
required  for  the  roads  if  the  owner  of  the  land  surrenders  it  free  of  compensation  to  the  BMC.  
 
Institutional Buildings: BMC may permit additional FSI for such buildings subject to the terms and 
conditions specified by the BMC in this regard. 
Hotels: FSI can be exceeded by starred category of residential hotels in accordance with the terms 
and conditions specified by the BMC in this regard. 
MHADA Schemes: Low‐cost housing schemes, for the economically weaker sections of the society, 
developed  by  the  Maharashtra  Housing  and  Area  Development  Authority  are  also  eligible  for 
additional FSI over and above those specified in the table. 
Cessed  Buildings:  For  the  reconstruction  of  cessed  buildings  located  in  the  Island  City,  the  FSI 
available is as high as 2.5 on the gross plot area. A cessed building means a heritage building, etc. 
Similarly for repairs of cessed buildings and Urban Renewal Schemes undertaken by MHADA the FSI 
shall extend upto the area required for rehabilitation of the occupiers. 
Slum redevelopment scheme: For redevelopment of slums, pavements, construction of transit camp 
tenements, etc. additional FSI is allowed subject to the terms and conditions specified in this regard. 
 
Software Buildings: BMC may permit the maximum permissible FSI to be exceeded by buildings on 
plots  of  Information  Technology  establishments  set  up  by  Public  Bodies  such  as  MHADA,  SEEPZ, 
SICOM, etc. or their joint ventures. 
 
Future of land and Govt’s planning 
In its final draft of New Housing Policy and Action Plan, 2015, the Government of Maharashtra points 
out that key factor affecting housing is cost of land. The key to reducing cost is supply of land with 
Government being a catalyst in the process. The Government will introduce land supply periodically 
by putting in place the necessary regulatory framework to encourage supply from the private sector. 
It is necessary that government land as well as the lands at the disposal of State Government entities 
such as MIDC, Mahasagar Dairy, ULBs, CIDCO, MHADA and MMRDA are pooled together and used 
for housing, states the draft.  
The land owner i.e. State Government or its entities will be compensated at the Ready Reckoner 
Rate for use of their land to provide affordable housing. The government land bank will include all 
land available with MHADA, MCGM and MMRDA in the city of Mumbai and in the other cities of the 
State, the surplus lands with various State Government departments, textile mill lands in the share 
of MHADA, unused MIDC lands, MIDC lands where the industries are defunct and which can be used 
for housing etc. Preparation of the government land bank plan will ensure efficient land use. All such 
surplus  land  will  be  beneficially  used  for  housing,  especially  affordable  housing,  the  draft  further 
adds.  
The draft makes it clear that if the lands in the Government Land Bank are reserved for any purpose, 
all such reservations shall stand deleted and the lands will be made available for affordable housing 
unless the same is environmentally not feasible. 
 

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