Mill workers’ housing: State raises FSI to 3, cuts minimum plot size to one acre

MUMBAI: For thousands of former textile mill workers and their families in the city, the wait for a home of their own has stretched on for decades

MUMBAI: For thousands of former textile mill workers and their families in the city, the wait for a home of their own has stretched on for decades. Hoping to accelerate the long-delayed housing scheme, the Maharashtra government on Monday eased development norms, raising the permissible floor space index (FSI) in residential zones from 2.5 to 3 and allowing construction in green and no-development zones (NDZ) with an FSI of 1.

The government has also reduced the minimum land requirement for private developers undertaking mill workers’ housing from 30 acres to just one acre. The changes are aimed at encouraging greater participation by developers and expanding the pool of land available for the scheme in Mumbai and the Mumbai Metropolitan Region (MMR).

The state government’s housing policy covers eligible mill workers and their legal heirs from 58 sick or closed textile mills within the Brihanmumbai Municipal Corporation (BMC) limits. The mills were among those affected by the 1982 textile strike, which dealt a devastating blow to the city’s once-thriving textile industry and the livelihoods of thousands of workers.

The government issued a government resolution (GR) on Monday, amending earlier provisions to facilitate the construction and procurement of homes for eligible beneficiaries.

Under the revised norms, housing projects for mill workers in residential zones will be allowed an FSI of 3, up from the existing 2.5. FSI determines the total permissible built-up area on a plot in relation to its size. The increase will allow developers to construct more floor space on the same parcel of land, potentially improving the financial viability of projects.

The government has also permitted an FSI of 1 for mill workers’ housing in green and no-development zones. Such areas are ordinarily subject to restrictions on residential construction, with only specified special projects or public-purpose developments permitted, generally at an FSI ranging from 0.20 to 0.50. The revised provisions create an exception for the mill workers’ housing scheme, allowing greater construction potential on land falling within these zones.

Another major relaxation concerns the size of land parcels required for private developers. Previously, developers seeking approval for mill workers’ housing plans had to own at least 30 acres or possess a non-transferable power of attorney for land of that extent. The minimum requirement has now been reduced to one acre, lowering the entry barrier for developers and potentially enabling smaller land parcels to be considered for projects.

The government has also opened the door to procuring ready-possession homes for mill workers in the MMR, rather than relying solely on new construction. The purchase price will be capped at ₹15 lakh per dwelling or the applicable ready reckoner rate, whichever is lower. However, only projects offering at least 100 such homes will qualify under this provision.

To implement the ready-home procurement option, the Maharashtra Housing and Area Development Authority (Mhada) will invite expressions of interest (EoIs) from developers willing to offer qualifying housing units.