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Mumbai’s PAP housing shortage slows pace of infrastructure projects

#Law & Policy#Infrastructure#India#Maharashtra#Mumbai City
Mumbai News Desk | Last Updated : 7th Apr, 2026
Synopsis

Mumbai is facing a significant shortage of housing for project-affected persons (PAPs), which is impacting the pace of infrastructure development. The civic body requires nearly 75,000 rehabilitation units but has access to only about 8,000, creating a large gap. Policy tools like TDR have not fully translated into adequate housing supply, while concerns over misuse and delays persist. Authorities are now considering converting SRA transit camps into permanent units and have formed a coordination committee to address the issue and improve execution.

Mumbai's infrastructure rollout is being affected due to a widening shortage of housing for project-affected persons (PAPs), with a substantial gap between required and available units. The municipal corporation currently needs close to 75,000 units for rehabilitation, while only around 8,000 units are readily available, leaving a deficit of nearly 67,000 units that must be addressed before project execution can proceed smoothly.


The shortage has emerged as a key constraint for several ongoing and planned infrastructure projects, as rehabilitation of PAPs is a mandatory pre-condition. Delays in providing these units are slowing down road works, metro expansion, and other public infrastructure initiatives across the city.

Under the Development Control and Promotion Regulations (DCPR) 2034, private developers are allowed to construct PAP housing in exchange for Transferable Development Rights (TDR). These rights can be used in other real estate projects, making the model attractive for developers. However, concerns have been raised that the policy has not delivered the expected scale of housing for displaced families. Stakeholders have pointed out that while developers benefit from TDR, the actual supply of PAP units remains limited.

Concerns related to governance and implementation have also been highlighted. During a recent civic meeting, elected representatives raised issues regarding irregularities in the allocation and use of PAP housing. It was stated that in some cases, units meant for rehabilitation were reportedly being rented out or sold by developers instead of being handed over to the authorities. There were also remarks that the issue had not received adequate administrative attention despite its growing impact on infrastructure timelines.

To address the shortage, the administration is exploring the option of converting transit camps developed by the Slum Rehabilitation Authority (SRA) into permanent PAP housing. This proposal is under discussion with the state government and could help increase the available housing stock if implemented effectively. Officials believe this approach may provide quicker relief compared to building new units from scratch.

In addition, a multi-agency coordination committee has been formed, including representatives from the municipal corporation, metropolitan authority, housing bodies, and revenue departments. The committee is expected to meet regularly to review progress, identify bottlenecks, and streamline the allocation and development of PAP housing.

The issue has also gained attention due to past concerns around project execution. A separate probe was recently ordered into alleged irregularities worth around INR 850 crore in a PAP housing project in Malad, highlighting gaps in monitoring and compliance. Such instances have added to concerns about transparency and effective utilisation of resources in PAP housing schemes.

Mumbai has long faced challenges in resettling displaced residents due to limited land availability and high population density. With multiple large-scale infrastructure projects underway, ensuring timely rehabilitation has become essential for maintaining project schedules and avoiding cost overruns.

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