Maharashtra Unveils Policy to Transform Underutilised Government Land for Urban Development
The Maharashtra State Cabinet has approved a policy to allocate small, underutilised government land parcels for urban development, aiming to boost infrastructure and state revenue.
MaharashtraUrban DevelopmentReal EstateLand AllocationInfrastructureReal Estate MaharashtraAug 05, 2025
The policy focuses on narrow, vacant, or land-locked plots that are often ignored due to size or construction challenges. These parcels, once considered unusable, will now be opened for productive urban development.
Under the proposal by Revenue Minister Chandrashekhar Bawankule, individual applicants can obtain land directly under tenure rights. If multiple applications are received for the same parcel, a transparent auction process will be initiated to allocate it to the highest bidder.
To ensure fair usage and state benefit, the cabinet has approved guidelines for setting annual ground rent or occupancy fees, streamlining revenue collection and land valuation practices.
By unlocking dormant land for development, the state aims to increase housing and infrastructure supply, support adjacent landowners and developers, and enhance planned urban expansion. This initiative is expected to have a significant impact on urban growth, particularly in regions like Mumbai Metropolitan Region (MMR) and Pune, where land availability has been a critical issue.
The policy is expected to bring a fresh wave of investment and development, contributing to the overall economic growth of the state. It will also help in addressing the housing shortage and improving the quality of life for residents in urban areas.
This move by the Maharashtra government is a welcome step towards sustainable urban planning and development. The transparency in the allocation process and the focus on underutilised land parcels are key aspects that will ensure the policy's success and long-term benefits for the state.
Frequently Asked Questions
What is the main goal of the new policy?
The main goal of the new policy is to boost urban infrastructure and revenue by allocating small, underutilised government land parcels for development.
Who can apply for the land parcels?
Individual applicants can apply for the land parcels directly under tenure rights. If multiple applications are received, the land will be allocated through a transparent auction process.
How will the state benefit from this policy?
The state will benefit through increased revenue from annual ground rent or occupancy fees, enhanced housing and infrastructure supply, and support for adjacent landowners and developers.
Which regions are expected to benefit the most?
Regions like the Mumbai Metropolitan Region (MMR) and Pune are expected to benefit the most from this policy, as land availability has been a critical issue in these areas.
What is the expected impact on urban growth?
The policy is expected to bring a fresh wave of investment and development, contributing to the overall economic growth of the state and improving the quality of life for residents in urban areas.
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