Mumbai's PAP Housing Shortage Impacts Infrastructure Projects

Published: April 07, 2026 | Category: Real Estate Mumbai
Mumbai's PAP Housing Shortage Impacts Infrastructure Projects

Mumbai's infrastructure rollout is being affected due to a widening shortage of housing for Project-Affected Persons (PAPs). 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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Frequently Asked Questions

1. What is the current shortage of PAP housing units in Mumbai?
Mumbai currently needs around 75,000 PAP housing units, but only 8,000 units are available, leaving a deficit of nearly 67,000 units.
2. How does the shortage of PAP housing affect infrastructure projects?
The shortage of PAP housing units is slowing down various infrastructure projects, including road works, metro expansion, and other public initiatives, as rehabilitation of PAPs is a mandatory pre-condition.
3. What is the role of Transferable Development Rights (TDR) in PAP housing?
Under the DCPR 2034, private developers can construct PAP housing in exchange for TDR, which they can use in other real estate projects. However, this policy has not delivered the expected scale of housing for displaced families.
4. What are the governance and implementation issues in PAP housing?
There have been concerns about irregularities in the allocation and use of PAP housing units, with some units reportedly being rented out or sold by developers instead of being handed over to the authorities.
5. What steps are being taken to address the PAP housing shortage?
The administration is exploring the conversion of transit camps into permanent PAP housing and has formed a multi-agency coordination committee to review progress and streamline the allocation and development of PAP housing.