In a significant step towards reshaping one of Mumbai’s most ambitious urban renewal projects, the state government has proposed enhanced rehabilitation benefits for residents of Dharavi. The revised framework under the Dharavi Redevelopment Project (DRP) introduces a higher minimum housing entitlement along with an additional 35 per cent fungible carpet area, aimed at improving living conditions for eligible occupants.
The proposal is currently in the notification stage, inviting public feedback before final approval. The move is aimed at improving housing standards for thousands of families in one of Asia’s largest informal settlements, which is undergoing large-scale redevelopment under the urban development department.
The proposal has been published as a draft notification, inviting public objections and suggestions from affected stakeholders. Interestingly, activist advocate Godfrey Pimenta welcomed the decision and demanded that similar provisions be made applicable to Slum Rehabilitation Authority (SRA) schemes as well.
Key proposal details
1. Increased minimum rehabilitation area
>> Earlier provision: 300 sq ft (27.88 sq m)
>> Proposed revision: 370 sq ft (34.37 sq m)
>> Eligible residents will receive a minimum upgraded carpet area in reconstructed housing
2. Maximum entitlement unchanged
>> Residents will still be entitled to a maximum area equal to their original occupied space in the old building.
3. 35% additional fungible area
>> A 35% extra carpet area is proposed over the entitled rehabilitation space.
>> This additional space is strictly for rehabilitation purposes.
>> It will not be counted for incentive calculations under the scheme.
Cost and payment structure
Units up to 70 sq m will be provided as part of the RRC (Rehabilitation & Resettlement Component) at no cost.
Any area beyond 70 sq. m. will be:
>> Treated as additional construction cost
>> Determined by planning authorities (DRP/SRA/OSD)
>> Paid by the occupant to the developer
Objective of the revision
According to the government notification, the revision aims to…
>> Improve living standards in redeveloped housing
>> Provide more usable residential space
>> Ensure better rehabilitation outcomes for eligible occupants
Market expert speaks
Pankaj Kapoor, founder and managing director of Liases Foras, said, “When the Dharavi redevelopment was conceptualised, the earlier planning envisaged a total built-up development potential of about 10 crore sq ft, of which roughly around 4-4.5 crore sq ft was expected to be rehabilitation component, with the balance free sale component and with the latest announcement, the rehabilitation component will go up from 4 to 5.4 crore sq ft and this will reduce the free sale component which may come down from six crore sq ft to 4.6 crore sq ft. Moreover, if rehabilitation requirements increase, the balance between rehabilitation and saleable components will need to be recalibrated to maintain the overall financial viability of the project.”
State Housing Federation reacts
Advocate Shreeprasad Parab of the Maharashtra State Co-operative Housing Federation, said, “The proposed amendment is a positive step toward providing larger, more dignified homes, especially in redevelopment projects like Dharavi, reflecting the state’s commitment to better living standards. However, its success depends on transparent, fair, and strictly monitored implementation. Authorities must prevent misuse by developers through cost inflation, delays, or poor construction quality. Clear guidelines on eligibility, carpet area, and timelines, along with strict penalties, are essential. An independent monitoring and grievance redressal system should protect residents’
