UDCPR 2020 / Chapter 4, Land use classification and permissible uses
4.8.1 Allowing Residential / Commercial Uses in Industrial Zone
UDCPR 2020 as amended to 30.01.2025
In consultation with the Divisional Head of concerned division of the Town Planning Directorate in case of areas other than Municipal Corporations and in case of Municipal Corporations without such consultation, and on appropriate conditions,
a) The existing or newly built-up area of Industrial unit in the Industrial zone (excluding the area of Cotton Textile Mills) may be permitted to be utilized for Residential or Commercial purposes;
b) The lands in the Industrial Zone in Development Plan, Regional Plan excluding the area of Cotton Textile Mills, but including lands in industrial zone in Town Planning Scheme area, may be utilised for any of the permissible uses in the Residential and Commercial Zone subject to the following provisions :-
i) Such use shall be allowed only on payment of Premium at the rate of 5%of the land value arrived at as per the Annual Statement of Rates (without considering the guidelines therein) of the respective year. For calculating land value, industrial holding in the development proposal shall be considered. Out of this, 50% amount shall be paid to the Authority and 50% amount shall be paid to the Government.
ii) The Residential / Commercial use in respect of industries which are not in operation or which are to be closed, shall not be permitted without an NOC from Labour Commissioner, Maharashtra State, Mumbai stating that all legal dues have been paid to the workers or satisfactory arrangements between management and workers have been made. However, in respect of any open land in the Industrial Zone where industry never existed, NOC from Labour Commissioner shall not be required.
iii) Recreational open space as may be required under regulations for Residential use shall be provided.
iv) The land to be provided as amenity space in the provisions mentioned hereunder shall be handed over to the Authority free of encumbrances.
v) In the layout or sub-division of such land admeasuring up to 2 Ha., 10% of land shall be provided for public utilities and amenities, like electric sub-station, bus-station, sub-post office, police out–post, garden, play ground, school, dispensary and such other amenities / utilities as may be considered necessary. In case of land admeasuring more than 2 ha., such amenity space shall be 10% upto 2 ha. area and 15% for the area over and above 2 ha.
vi) The land having area up to (2) 1.0 hectare in size which is allocated for industrial use may be permitted to be used for Residential purpose or any other permissible uses in Residential / Commercial Zone. The owner / developer shall provide either 10% amenity space in the form of open land or 5% built up space in the proposed construction at appropriate location, preferably on ground floor. Amenity TDR, as per regulation containing provisions of TDR, shall be permissible.
vii) The land under public utility / amenity shall be handed over to the Planning Authority in lieu of FSI / TDR with proper access and levelling of the land. These areas will be in addition to the recreational space as required to be provided under these regulations.
viii) At least 50% of total land provided for public amenity / utility space shall be reserved for unbuildable purposes such as garden, recreational ground, etc. by the Authority.
(1)
Provided that if such amenity space is less than 1000 sq.m. then it shall be reserved only for unbuildable purposes such as garden, recreational ground and may be allowed on internal road / Layout road / existing road / accessroad having width less than 12.0 m.
ix) The required segregating distance between Industrial Zone and the area over which Residential use is permitted under this regulation, shall be provided within such land intended to be used for residential or commercial purpose. In case of adjoining area is developed and obnoxious industry is existing on such part, then necessary segregation distance shall be provided. However, if non-obnoxious user is existing on such part, no such segregation distance shall be provided.
x) Such residential or commercial development shall be allowed within the permissible FSI of the nearby Residential or Commercial Zone.
xi) Provision for Amenity Spaces shall be considered to be reservations in the Development Plan and Transferable Development Rights against such amenity as per Regulation No.11.2 may be given or FSI of the same equivalent to the TDR quantum shall be available for utilisation on the remaining land. Moreover, the owner shall be entitled to develop remaining land with permissible TDR potential including the land under amenity space subject to maximum permissible limit of FSI (Maximum Building Potential) as mentioned in Regulation No.6.3.
(1) Inserted vide Corrigendum / Addendum No.CR.121/21, dt.02nd December, 2021
(2) Inserted Vide Notification u/s.37(1AA)(C) & 20(4) by Govt. No.CR.236/18 (Part 4), dt.28th December, 2022
xii) Residential / Commercial use may be allowed on the part area of the land holding subject to the condition that total area of the entire industrial land holding shall be considered for deciding the percentage of the land to be earmarked for public amenity / utility spaces, as per these regulations.
xiii) If Development Plan Reservations (excluding DP Road / Road widening) falls within or adjacent to the land of the same land owner under I to R provision, then such reservation may be adjusted in amenity space in the following manner :
a) If the area under development plan reservation is less than the area required for public amenity space as per this regulation, then only the difference between the areas shall be provided for public amenity space.
b) If the area under reservation in development plan is more than the area required for public amenity space as per this regulation, then the area for public amenity space shall be provided equal to area required under this regulation. The word "adjacent" shall also include the land of the same owner separated by nallah, river, canal, road etc., for the purpose of this regulation.
xiv) Provisions of Accommodation Reservation mentioned in Regulation No.11.1 shall not be applicable for development of amenity space provided in this regulation.
xv) Minimum 10% built up area (basic FSI) for area upto 1 ha. and 5% built up area (basic FSI) for area more than 1 ha., shall be used for offices and commercial purpose, in case of development undertaken under this regulation, by closing down the existing industry. However, this provision shall not be applicable, in case of permission being sought under this regulation, where such plot falls in industrial zone, without existing industry.
(#)
xvi) The provision of inclusive housing as mentioned in Regulation No.3.8 shall not be applicable. However, 20% of the land or FSI proposed to be used for residential purpose shall be utilised for plots below 100 sq.m.in case of plotted layout development or below 50 sq.mt. built-up area tenement in case of construction of housing scheme.
xvii) The industrial zone on which Residential / Commercial permission is granted, it shall be deemed to be converted into Residential / Commercial zone to the extent of that area, after issuance of final occupation certificate to the project.
xviii) If at the request of the Authority, the owner agrees to construct the amenity on the land on such amenity space, then he shall be entitled for construction TDR / FSI as per TDR Regulations.
c) On the date of draft publication of these UDCPR, if the entire holding of a person at a place in industrial zone admeasures less than 500 sq.m., then regulation mentioned in (b) above shall not be applicable and such plot in industrial zone shall be deemed to be included in adjoining zone, if requested by the owner.
d) If the land for industrial unit is acquired under the provisions of relevant Land Acquisition Act, then prior permission of the Government is necessary before permitting residential use on such lands and additional items and conditions mentioned in Land and Revenue Department, G.R. No.Sankirna-01/2017/C.R.11/A-2,dated 11/01/2018, as amended from time to time, shall be applicable.
(#) Clarification issued by the Govt. vide Order NO.CR.72/23/UD-12, dt.25th August, 2023
To see how 4.8.1 and the rest of UDCPR apply to a particular plot, with the clause behind every figure, open Citiwise.
The text of the Unified Development Control and Promotion Regulations for Maharashtra State, as amended to 30.01.2025. The notification of the Urban Development Department, Government of Maharashtra, is the authoritative text.