Maharashtra government approves slum cluster redevelopment scheme for Mumbai
Maharashtra’s new scheme proposes cluster-based slum redevelopment as integrated housing projects across 50-acre-plus sites
The Maharashtra cabinet on October 7 approved a cluster redevelopment scheme for slums in Mumbai, paving the way for large-scale transformation of the city’s informal settlements. The plan envisions converting slum clusters spread over more than 50 acres into integrated housing projects featuring improved living conditions and upgraded urban infrastructure.
To be implemented by the Slum Rehabilitation Authority (SRA), the initiative aims to accelerate redevelopment, attract private investment, and boost construction activity. According to a statement from Chief Minister Devendra Fadnavis’s office, the project is also expected to generate significant employment in the construction and allied sectors.
According to the government, the SRA will identify suitable clusters, with approvals routed through a high-level committee headed by the Additional Chief Secretary (Housing). Redevelopment may be undertaken via joint ventures or private developers, with incentives for larger rehabilitation projects. The policy also allows Floor Space Index (FSI) above 4 in certain cases to accommodate Project Affected Persons or relocate slums from non-developable areas like Coastal Regulation Zones.
The approval of projects under this also provides homebuyers and developers with several incentives that a typical integrated housing project receives in the state of Maharashtra, officials said.
Developers welcome the move
Real estate developers in the Mumbai real estate market have welcomed the government's move to approve a slum cluster redevelopment policy.
“We welcome the announcement of the Slum Cluster Redevelopment Policy by the State Cabinet. Currently, numerous small slum schemes are being undertaken on irregular and fragmented plots, creating planning inefficiencies and leaving several pockets undeveloped due to viability constraints. The new cluster-based approach will help overcome these challenges by enabling integrated development of larger contiguous areas under a single, well-planned framework," said Rushi Mehta, secretary, CREDAI-MCHI.
"This policy has the potential to transform the urban fabric of Mumbai, promoting sustainable redevelopment, better infrastructure, and a marked improvement in the quality of life for residents. We are confident that the Government has drawn valuable lessons from the earlier 3K approvals, and that this initiative will become a watershed moment in the city’s journey towards inclusive and dignified rehabilitation of slum dwellers," Mehta said.
