Maharashtra Approves Cluster-Based Slum Redevelopment in Mumbai
The Maharashtra government has approved a new cluster redevelopment scheme for slums in Mumbai, aiming to transform informal settlements into integrated housing projects. The plan covers sites larger than 50 acres and is expected to boost construction and employment.
Slum RedevelopmentMaharashtraMumbaiReal EstateUrban InfrastructureReal Estate MumbaiOct 08, 2025
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.
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 scheme also provides homebuyers and developers with several incentives that a typical integrated housing project receives in the state of Maharashtra, officials said.
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.
The Slum Rehabilitation Authority (SRA) is a key player in this initiative, tasked with identifying and managing the redevelopment of slum clusters. The SRA has been instrumental in previous slum rehabilitation projects and is expected to play a crucial role in ensuring the success of this new scheme. This policy is part of a broader effort to improve urban infrastructure and living conditions in Mumbai, one of India’s most populous and economically significant cities.
Frequently Asked Questions
What is the new cluster redevelopment scheme for slums in Mumbai?
The new cluster redevelopment scheme for slums in Mumbai, approved by the Maharashtra cabinet, aims to transform informal settlements into integrated housing projects. It covers slum clusters larger than 50 acres and is expected to improve living conditions and urban infrastructure.
Who will implement the slum redevelopment scheme?
The Slum Rehabilitation Authority (SRA) will implement the slum redevelopment scheme. The SRA will identify suitable clusters, and approvals will be routed through a high-level committee headed by the Additional Chief Secretary (Housing).
What are the incentives for developers under this scheme?
Developers and homebuyers will receive several incentives similar to those for typical integrated housing projects in Maharashtra. These incentives are designed to attract private investment and boost construction activity.
How will the new scheme impact employment in Mumbai?
The scheme is expected to generate significant employment in the construction and allied sectors. This will help create jobs and boost economic activity in the city.
What is the role of the Floor Space Index (FSI) in this redevelopment scheme?
The policy allows for an FSI above 4 in certain cases to accommodate Project Affected Persons or relocate slums from non-developable areas like Coastal Regulation Zones. This higher FSI is intended to support the development of larger, more integrated housing projects.
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