The plan, notified on Thursday, seeks to balance conservation with commercial activity and modern infrastructure, with the broader objective of strengthening Old Delhi as a retail, cultural, heritage and tourism destination while easing congestion.
From old buildings to boutique hotels, cafes and museums
The Walled City is Delhi’s historic core and one of India’s most important commercial and cultural areas. It is home to iconic markets and bazaars, including Chandni Chowk, Khari Baoli, Chawri Bazar, Dariba Kalan, Kinari Bazar, Nai Sarak, Bhagirath Palace, Sadar Bazar and Ballimaran. MPD-2047 proposes a heritage-led regeneration strategy that seeks to balance conservation with modern infrastructure and economic growth.
A key component is the adaptive reuse of heritage buildings as cultural centres, museums, boutique hotels, cafes, galleries, craft shops and other compatible uses. Old and underutilised buildings, open spaces and public land could also be revitalised as public plazas, cultural spaces and community gathering areas.
The plan also seeks to develop the Walled City as a cultural hub. Socio-cultural uses such as performance spaces, small museums, libraries and reading rooms, cafes, coworking spaces, craft centres and guest houses would be permitted in residential plots. Bed and Breakfast establishments would also be permitted in accordance with guidelines issued by the Ministry of Tourism or another concerned agency. The reuse of existing buildings is intended to make heritage conservation economically productive.
TDR framework to support heritage conservation
MPD-2047 also proposes a dedicated TDR framework for the Walled City to support heritage conservation, road improvements and public infrastructure.
Transferable Development Rights refer to an award specifying the extent of unutilised floor area ratio (FAR) on a plot or land that can be sold or used at an alternative site specified by the Master Plan. The plot from which the TDR originates would be the ‘Generating Site’, while the site where it is used would be the ‘Receiving Site’.
Under the proposed framework, TDR would be awarded only where land or development rights could not be availed. The Delhi Development Authority (DDA) would develop and maintain a dedicated single-window portal to facilitate TDR trading. However, the plan makes clear that TDR is an enabling provision and not an automatic entitlement. Detailed regulations for the framework would be formulated after notification of MPD-2047.
Godowns and wholesale trade face phased relocation
The proposed heritage-led transformation is closely linked to another challenge facing Old Delhi, the movement and storage of goods that supports its wholesale economy.
MPD-2047 identifies congestion caused by wholesale activity, warehousing and the movement of goods as a key challenge for the Walled City. It proposes removing all polluting industries and hazardous trades from the area, while discouraging godowns and wholesale activities and shifting them to compatible locations elsewhere in Delhi.
Non-conforming godowns and godown clusters that are not regularised or regenerated within the stipulated period would have to shift to conforming uses. These could include Integrated Freight Complexes, planned wholesale markets, warehousing schemes and regularised godown clusters. Within the Walled City, the plan calls for the phased relocation of incompatible activities like godowns and warehouses in consultation with traders.
Freight will be reorganised, not eliminated
The plan does not seek to sever Old Delhi’s commercial markets from the goods movement that keeps them functioning. Instead, it proposes reorganising logistics so that trade can continue with less congestion. It calls for organised logistics and goods movement systems, including consolidation centres, designated loading and unloading areas, time-based delivery schedules and efficient vertical storage solutions.
Six Metro stations, fewer cars and more pedestrian streets
Better public transport connectivity is central to the proposed transformation. The Walled City, served by six Metro stations, will get stronger last-mile links through walking, e-rickshaws and other non-motorised transport.
A traffic management plan will identify vehicular thoroughfares, pedestrianised streets, non-motorised transport (NMT) routes, timings and limits for service and goods vehicles, parking areas for residents and tourists, and commuter dispersal plans around Metro stations. The Walled City will also be promoted as an Active Travel Area, with facilities for walking, cycling and public cycle sharing.
The plan also proposes replacing overhead electric cables with underground utility networks and upgrading water supply, sewerage, drainage, waste management and fire safety. Wider footpaths, better paving, universal accessibility, street furniture and wayfinding will improve walkability while retaining emergency and essential access.
Paharganj, Sadar Bazar and Roshanara Road in wider reset
The proposed regeneration extends beyond the Walled City to other areas with established commercial and architectural identities, including Paharganj, Sadar Bazar, Azad Market and Bara Hindu Rao.
The plan proposes revitalising specific economic activities through regeneration. Paharganj, for instance, is identified for development as a hospitality district, while Sadar Bazar is proposed for warehousing and wholesale activity.
Sadar Bazar’s existing wholesale market would require comprehensive strategies to modernise its built fabric, improve the movement of goods and upgrade allied infrastructure. Parts of Karol Bagh, which have a distinct architectural character, could also be surveyed by local bodies to identify areas and buildings that qualify as modern heritage.
MPD-2047 does not propose turning Old Delhi into a museum district. Instead, it seeks to retain the area’s bazaars and commercial character while moving incompatible warehousing, modernising logistics, reusing heritage properties and expanding tourism and cultural activity.
