Union Housing Minister Ajay Maken has stated that Mumbai's FSI policy requires scrutiny. He emphasized that affordable housing development hinges on revising this policy. Consequently, adjustments to the FSI (Floor Space Index) policy, not just in Mumbai but across India’s major cities, are deemed essential by experts . The minister posited that builders could construct more affordable homes if this index were augmented.
The prospect of taller skyscrapers looms for India's major cities. Should the FSI policy undergo revision, and the rate subsequently increases, metropolises such as Mumbai and Bangalore could witness a surge in high-rise residential projects. Vertical development tends to be more economical, which may translate to more affordable home prices for buyers.
Mr. Maken has urged all Development Authorities in major cities to reassess their FSI policies. He emphasized its necessity to tackle the ongoing affordable housing shortage. Raising this parameter could stimulate the construction of additional affordable housing units.
Addressing the demand for affordable units among city dwellers, Minister Maken advocated granting infrastructure status to the affordable housing sector. He made these remarks at a gathering on ‘Challenges in mega city governance’, hosted by the Confederation of Indian Industry (CII) alongside the Centre for Policy Research (CPR) in New Delhi. Mr. Adi Godrej, the president of CII, chaired this important meeting.
Mr. Maken highlighted that approximately half of Mumbai’s residents live in slums, a situation mirrored in other major cities like Delhi. He underscored the importance of increasing affordable housing to meet demand, urging developers to prioritize such projects even in prime metropolitan areas.
He clarified that state governments bear the responsibility for determining their respective FSI policies. While asserting the need to reevaluate Mumbai's FSI policy, hopes were expressed that the relevant authorities would address the pressing issue.
In addition to FSI considerations, the Central government intends to grant infrastructure status to the affordable housing segment. Mr. Maken elaborated that the Union government aims to extend infrastructure status, at least to the affordable housing sub-sector within real estate, which could provide a boost to its growth prospects.