Mumbai's Long-Delayed Luxury Floating Hotel Project Clears Key Regulatory Hurdle, Set To Boost Maritime Tourism

Mumbai's long-delayed proposal to develop India's first luxury offshore floating hotel (Floatel) off the city's coastline has moved a step closer to reality, with the Maharashtra Coastal Zone Management Authority (MCZMA) recommending the project to the Union Ministry of Environment, Forest and Climate Change (MoEF&CC) for Coastal Regulation Zone (CRZ) clearance.

The proposal traces its origins to the late 1990s when Raj Pradhan, Managing Director of Rashmi Developments, attempted to establish Mumbai's first floating restaurant.

In 1997, following the grounding of the vessel Zheng Dong off Carter Road while it was being towed to the Alang ship-breaking yard, Pradhan proposed converting the ship into a floating hotel. The plan, however, was shelved after local residents approached the Bombay High Court, stalling the project despite subsequent permissions reportedly being obtained.

Almost three decades later, the company has revived its broader vision of developing offshore hospitality infrastructure along Mumbai's coastline.

The MCZMA recommendation follows months of deliberations over the legality of constructing an integrated marina and terminal building on reclaimed land in the sea at Cuffe Parade. The project proposes reclaiming a portion of the sea to build an eight-storey marina terminal while a seven-star floating hotel will remain anchored about two nautical miles off Nariman Point.

The proposal, submitted by Rashmi Developments Pvt Ltd, is officially titled "Inland Water Transport Terminal – Development of Marina" and is planned as a multi-modal waterfront development aimed at boosting marine tourism, recreational boating and water transport.

The project includes a marina building with yacht club facilities, executive lounges, conference spaces, restaurants, retail outlets, an art gallery, helipad, seaplane and eVTOL facilities, besides luxury serviced apartments overlooking the Arabian Sea. Visitors would access the offshore floating hotel through the terminal using speedboats, helicopters or seaplanes.

Sea reclamation central to project

According to the Detailed Project Report (DPR), the project involves constructing a 35,000-square metre terminal building comprising two basement levels and six upper floors on reclaimed land within the CRZ-IV (sea) area.

The proposal also includes breakwaters, jetties, yacht ramps, navigation channels and turning circles requiring capital dredging of about 10.25 lakh cubic metres and sea reclamation of around 2.17 lakh cubic metres to create the marina infrastructure.

During deliberations, MCZMA members questioned whether such a building could legally be permitted in CRZ-IV waters, noting that standalone building construction is generally not permissible under the CRZ Notification, 2019.

The project proponent argued that the terminal building forms an integral part of the marina, which is a permissible activity under the CRZ framework, and therefore should be considered along with the overall marina project rather than as an independent building.

The Authority eventually concluded that since the integrated project lies within CRZ-I and CRZ-IV areas, it falls under the jurisdiction of the Union environment ministry under Paragraph 7(ii) of the CRZ Notification, 2019. It therefore decided to recommend the proposal to MoEF&CC for final CRZ clearance, subject to multiple environmental safeguards.

Long legal battle over jetty proposal

The project has its origins in an earlier proposal for a floating jetty and waiting area intended to serve an offshore hotel.

In 2017, a three-member committee constituted following directions of the Bombay High Court rejected the proposal, citing the importance of the Marine Drive promenade and its proximity to heritage precincts.

Rashmi Developments challenged that decision before the Bombay High Court. While the petition was initially dismissed in 2018, the court later heard an interim application and, in January 2023, remanded the matter to the Municipal Commissioner to determine which authority had jurisdiction over the proposal.

Subsequent meetings involving the Municipal Corporation, Maharashtra Maritime Board (MMB) and MMRDA concluded that after transfer of the Backbay Reclamation Scheme area to the Brihanmumbai Municipal Corporation, the Municipal Commissioner could consider the proposal after obtaining statutory approvals from authorities including MCZMA and MMB.

The land had earlier been transferred to the Maharashtra Maritime Board for development of an inland water transport terminal.

Following a Swiss Challenge bidding process, Rashmi Developments was selected as the project developer. The Maharashtra Maritime Board issued a Letter of Intent in July 2024 and subsequently approved the Detailed Project Report in May 2026.

Expansion plans beyond the Floatel

Information available on the company's website indicates that the floating hotel is envisaged as only the first phase of a larger tourism ecosystem.

The second phase proposes introducing seaplane services connecting Mumbai with destinations including Lonavala, Pawna Dam, Bhushi Dam and Nashik.

The company also plans to launch coastal cruise services to destinations such as Dighi, Jaigad, Ganpatipule, Ratnagiri, Vijaydurg and Tarkarli to promote maritime tourism along Maharashtra's coastline.

Another proposal includes developing an island wellness resort with 36 accommodation units, accessible by boat, as part of a broader tourism and hospitality network.

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