MCD struggles to push open air restaurants

New Delhi: Municipal Corporation of Delhi's much-publicised open-air restaurant policy, launched in Nov 2022 to promote Delhi’s night-time economy, has failed to take off, with the number of licensed establishments dropping from 201 to fewer than 100.Despite repeated efforts by MCD to promote terrace dining and open-air restaurant spaces, officials said the concept had struggled to gain acceptance due to high licensing costs and the lack of suitable infrastructure at many establishments. The policy was revived following directions from former lieutenant governor VK Saxena.Under the unified policy, restaurants seeking permission to operate terrace restaurants or use open spaces within their premises are required to pay a licence fee of Rs 200 per sq ft, while five-star hotels/eateries are charged Rs 500 per sq ft. Following the then LG's intervention, MCD had invited applications from restaurants and eateries. “While we managed to issue licences to 201 operators, the number has steadily declined as many licensees were unable to generate enough business. Currently, only around 100 such licences remain active,” an official said. “The cost is high, and even during winter, when such spaces are expected to do well, customers often prefer to sit indoors due to high pollution levels," he added. MCD will conduct a drive to increase the number, said officials.According to MCD norms, no separate fire NOC is required for eating establishments with an area up to 90 square metres if they already possess a fire NOC. “However, if the addition of an open space takes the total area to 90 square metres or more, a fire NOC becomes mandatory,” MCD stated.Under the policy, cooking is prohibited in such open areas, operators must ensure no nuisance is caused to neighbours, and if alcohol is served, the area must be properly covered.Manpreet Singh, treasurer of National Restaurant Association of India, said changing customer preferences and Delhi’s deteriorating winter air quality had hurt the concept. "Several people now prefer to leave Delhi during winter, which was earlier considered the ideal season for open-air dining. There have been instances where customers book outdoor seating but later request to be shifted indoors to avoid discomfort,” he said.