Transforming Mumbai - Infrastructure Thrust & FSI

A proposal has been mooted to increase Floor Space Index (FSI) across Mumbai between 3-8x. This is a follow-up of the announcement made at the recently concluded “Mumbai Metropolitan Region Transformational Enclave”, wherein the state government stated that it will look at increasing FSI in Greater Mumbai for the promotion of new industrial hubs and affordable housing. The state government is increasingly focused on urban infrastructure creation in Mumbai, something which the city desperately lacks. This is also in line with the Chief Minister’s resolve to make Mumbai a global financial hub. Even if half of these projects get implemented, it could have a cataclysmic effect on the city’s real estate / infra potential. Some of the key initiatives announced by the government are listed below

1. FSI increase in Greater Mumbai for promoting infrastructure creation and reducing population pressure on the city. Proposal has been mooted now to increase it to between 3.5-8x. However, the final notification of this plan is likely 1-2 years away.

2. Creation of an IT-based platform for project clearance thus cutting lead times. A “war room” at the CM’s office to coordinate projects across 17 different government agencies will also be put in place.

3. Implementation of the U$1.5B, 36KM coastal road project in two years.

4. Completion of the first phase of the Navi Mumbai International Airport by 2019.

5. Allowing the local municipal body (BMC) to raise bonds to fund new infra creation.

6. Release of a New Tourism Policy for the city.

7. Get work started on the Trans Harbor Link (22KM) that connects the city to the mainland and thus open up new development avenues.

8. Extension of Metro Rail in three new areas connecting the city to suburbs.

9. Creation of a new “BKC”-like district in Thane and improving connectivity of BKC to other suburbs via connector bridges and roads.

10. The state government has also asked the center for tax benefits for the promotion of financial activities in the city.

Mumbai, over the last 10 years, has lagged its competitor cities in new infrastructure creation. Delhi/NCR region has thus rapidly moved ahead of Mumbai driven by private/public infrastructure participation. However, the state government now seems to be intent on changing that. A master plan seems to have been laid for a “transformation” over the next five years.