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Key Highlights of Maharashtra’s New Redevelopment Norms Around Mumbai Airport Funnel Zone

Written by: Team Angel OneUpdated on: Apr 17, 2025, 2:11 PM IST
Maharashtra eases redevelopment norms in Mumbai Airport’s funnel zone. Here are 4 major updates impacting old buildings in key areas like Santacruz and Andheri.
Key Highlights of Maharashtra’s New Redevelopment Norms Around Mumbai Airport Funnel Zone
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Redevelopment in Mumbai’s dense urban zones often runs into regulatory roadblocks, especially near aviation-sensitive areas like airports. In a significant step to address such issues, the Maharashtra Government’s Urban Development Department (UDD) has introduced key changes to promote redevelopment of old buildings located within the Mumbai Airport’s funnel zone, which includes neighbourhoods like Santacruz, Vile Parle, Kurla, and Andheri.

This area, located under the Chhatrapati Shivaji Maharaj International Airport’s flight path, has long been under development restrictions due to aviation safety protocols. However, a recent policy shift offers a much-needed boost to the redevelopment ambitions of property owners and developers.

According to a report, here are 4 important things to know about the relaxations under the revised policy:

What is a Funnel Zone and Why Does It Matter?

A funnel zone refers to the designated air corridor through which aircraft approach or take off from an airport. Much like traffic lanes for road vehicles, these zones are crucial for ensuring safe air navigation. Buildings in such zones face strict height restrictions, which often limit redevelopment efforts.

According to reports, any structure that may obstruct this air funnel poses a potential risk to aviation safety. Therefore, redevelopment in such areas has historically been difficult, but the Maharashtra government is now offering conditional relaxations.

1. Lower Premium Costs for Redevelopment Projects

The first major reform concerns the premium charges levied on real estate developers. The Maharashtra UDD has reduced these premiums specifically for:

  • Buildings that are over 30 years old

  • Structures that are up to 18 metres in height (approximately five storeys)

  • Projects located within the defined funnel zone

These changes have been incorporated through an amendment to the Development Control and Promotional Rules (DCPR) 2034, which now includes a new chapter exclusively for residents and developers in the funnel zone.

2. Unlocking FSI Value Through Transfer of Development Rights (TDR)

The policy introduces the option to generate and sell Transfer of Development Rights (TDR) when basic FSI (Floor Space Index) cannot be fully utilised due to height restrictions.

Key highlights include:

  • The basic FSI will remain 1 within the funnel zone.

  • If residents are unable to consume this due to aviation-related restrictions, they are eligible to generate TDR.

  • Builders applying for additional FSI will need to pay a premium of 60% of the base cost, thereby lowering their overall construction expenses.

This step allows builders and society members to recoup lost development potential by transferring it to other areas.

3. Criteria for Beneficiaries Under the Relaxed Rules

The relaxation policy is limited in scope and not open-ended. As per the notification:

  • Only existing societies that house owners or tenants are eligible.

  • The intent is to promote genuine redevelopment needs, not speculative constructions.

This targeted approach ensures that the policy benefits long-standing residents and communities seeking improved living conditions.

4. Redevelopment Approvals Subject to Individual Assessment

Although the policy introduces broad relaxations, it does not guarantee automatic approval. Instead:

  • Proposals for redevelopment must be submitted with proper documentation.

  • Applicants must provide justifications, including planning challenges or hardship due to height restrictions.

  • The approval will depend on the specifics of each case, evaluated by the competent authority.

This ensures that aviation safety remains uncompromised, while allowing flexibility for practical redevelopment in constrained urban areas.

Conclusion

The revised funnel zone policy by the Maharashtra government is a strategic move to balance safety with urban renewal. While the relaxations offer a pathway to rejuvenate ageing buildings near the Mumbai Airport, each project will still undergo rigorous scrutiny. This initiative could pave the way for more structured redevelopment models in other aviation-sensitive zones across India.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

Published on: Apr 17, 2025, 2:11 PM IST

Team Angel One

Team Angel One is a group of experienced financial writers that deliver insightful articles on the stock market, IPO, economy, personal finance, commodities and related categories.

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