Open air dining finds few takers, licenses down by half

Delhi's open-air dining policy faces decline, with licensed units halving due to high costs and pollution, despite MCD's promotional efforts.

Despite a sustained push by the Municipal Corporation of Delhi (MCD) to promote its open-air dining policy, the initiative has seen a decline in interest from the city’s hospitality sector with the number of licensed units reduced to half from 201 to 98, said senior municipal officials.

Civic officials said the concept has struggled to gain acceptance due to very high licensing costs along with adverse weather conditions.

The project failed to expand even after four years since its launch by the former LG VK Saxena in 2022 where 200 units were granted licenses. Civic officials said the concept has struggled to gain acceptance due to very high licensing costs along with adverse weather conditions.

While the policy was originally launched in September 2020 by the public health department of erstwhile south MCD and later adopted by the north MCD, the unified MCD finalised the policy for open air dining on November 4, 2022, said officials.

Under the unified MCD policy, there was no requirement for a separate fire NOC. For using terrace or open area, the operators needed to submit licensing fees costing ₹200 per sq ft while high-end four star restaurants and above, required to submit ₹500 per sq ft.

Sandeep Anand Goyle, Delhi chapter head of the National Restaurant Association of India, said that the steep rates charged by the MCD are not economically viable. “These rates were not fixed in consultation with the industry. The steep rise from ₹100 to ₹200 per sq ft was unjustified and as a rectification measure, the rates need to be decreased,” he said.

Goyle said that Delhi suffers from winter pollution and people prefer not being outside from October till January. “There should be licenses for short periods. We are not sure if the municipal act permits this but excise licenses are issued for short periods, which can be replicated. NDMC does not have an open-dining policy,” he added.

Following LG’s intervention in 2022, MCD started the online application module for restaurants and cafes in 2023 to promote open-air dining. “The feedback from the industry has not been encouraging. “The licenses have steadily decreased because they couldn’t generate enough revenue to cover the costs,” an MCD official said adding that while winters are ideal for the concept, high pollution levels in Delhi make success impossible.

The open air dining policy permits food establishments to operate in open spaces, rooftops and terraces. However, cooking is prohibited in such areas. Operators must ensure that no nuisance is caused to neighbours, and if alcohol is being served, the area must be properly covered.