The announcements made last week by Manohar Lal Khattar on regularising the unauthorised colonies represent perhaps the most consequential transformation in decades of Delhi’s urban governance. Framed as PM-UDAY 2.0, the reforms initiated by the triple-engine BJP governments at the Centre, state and municipal corporation claim to be moving from political symbolism to structured administrative delivery.
For over three decades, regularisation of unauthorised colonies has remained a recurring electoral promise. In 2008, the government led by Sheila Dikshit issued provisional regularisation certificates to 1218 colonies before elections. However, it did not translate into legal ownership rights.
Delhi Lokayukta later observed that the exercise lacked a mechanism for actual regularisation. A subsequent audit flagged financial irregularities. In 2015, Arvind Kejriwal promised regularisation within one year, but implementation largely focused on infrastructure improvements rather than ownership rights.
The original PM-UDAY scheme, launched in 2019 under the leadership of Prime Minister Narendra Modi, provided legal backing through legislation and identified 1731 unauthorised colonies for ownership rights. PM-UDAY 2.0 builds upon that foundation but a lesser number of colonies. Granting legal ownership rights is central to PM-UDAY 2.0.
Once ownership is formalised, residents gain legally transferable and mortgageable property titles. This not only provides tenure security but also unlocks the economic value of properties that were earlier informal and legally uncertain. Legal ownership rights transform properties into bankable assets. Residents can access loans by mortgaging their properties, leading to financial empowerment.
Simultaneously, integration into formal banking channels promotes financial inclusion. This is significant because a large section of Delhi’s population living in unauthorised colonies has historically remained outside formal credit systems.
Having said that, the initiative also raises an important urban governance question. Is Delhi ready for the consequences of successful regularisation? Delhi’s civic infrastructure is under severe stress. Roads in many such colonies are narrow, drainage systems are inadequate, sewerage networks are incomplete, and access to emergency services remains difficult.
Perhaps the most metamorphic aspect of the implementation of PM-UDAY 2.0 would be the integration of unauthorised colonies into transit-oriented development (TOD), which permits development within a 500m radius of Metro and rapid rail corridors. Regularisation, especially when combined with higher floor area ratio (FAR) and TOD, will trigger intensified construction activity.
Vertical expansion of existing plots, redevelopment, and subdivision of properties could significantly increase population density. The policy provides for 65% of total FAR in TOD projects must be dedicated to housing units of 100sqm or less. This densification will have cascading effects. More residents mean higher demand for water, electricity, parking, schools, healthcare, and waste management.
Delhi struggles with groundwater depletion and depends on neighbouring states for water supply. Increased construction contributes to dust pollution, one of the major components of poor air quality. Higher population density translates into greater sewage generation, which may further burden already overstretched treatment infrastructure and worsen river pollution.
Transport infrastructure presents another challenge. While TOD aims to encourage walk-to-work lifestyles, unauthorised colonies are not adequately connected to mass transit systems. Without simultaneous mobility planning, densification may lead to congestion, increased vehicular emissions, and pressure on local roads.
Fire safety and disaster management become critical concerns. Densification in areas with narrow lanes can make evacuation and emergency response extremely difficult. Regularisation without parallel investment in widening access roads, installing hydrants, and enforcing building safety norms could increase vulnerability. PM-UDAY 2.0 must be accompanied by a comprehensive infrastructure upgrade plan.
Regularisation should not merely legalise existing structures but trigger planned investments in water supply, sewerage, roads, green spaces, and public services. Without this, the urban policy risks formalising congestion.
In principle, regularisation is a long-awaited step toward urban equity and economic empowerment. But its success will depend on whether infrastructure grows at the same pace as its newly formalised settlements. The real test of PM-UDAY 2.0 lies not in granting ownership, but in ensuring that legalisation leads to liveable neighbourhoods rather than more stressed urban pockets.
Sidharth Mishra
Author and president, Centre for Reforms, Development & Justice