Mumbai's MMRDA Secures ₹1500 Crore Loan for Ghatkopar Slum Redevelopment
The Mumbai Metropolitan Region Development Authority (MMRDA) has secured a ₹1500 crore loan from the Bank of Maharashtra (BoM) to fund the first phase of a ₹8498 crore slum redevelopment project in Ghatkopar. This marks a significant step towards inclusive urban renewal in Mumbai.
Slum RedevelopmentMmrdaBank Of MaharashtraMumbaiUrban RenewalReal Estate MumbaiMay 20, 2025
Sanjay Mukherjee, IAS, metropolitan commissioner, MMRDA, said: “This is not just a redevelopment project — it is a blueprint for inclusive and self-sustaining urban renewal. By structuring the project with 46 per cent funding through institutional loans and 39 per cent via internal revenue mechanisms, MMRDA is ensuring fiscal discipline while delivering people-centric development. Ramabai Nagar’s transformation will serve as a model for future SRA initiatives across the Mumbai Metropolitan Region.”
Of the total project cost of Rs 8,498 crore, Rs 3,916 crore will be raised through institutional loans. The Rs 1,500 crore loan from BoM represents the first tranche in this funding plan. The agreement has been executed as part of the implementation of Phase 1 of the project. To ensure the financial viability of the project, MMRDA has adopted a diversified funding strategy.
Devendra Fadnavis, chief minister of Maharashtra, said: “The Government of Maharashtra has taken a decisive step in resolving redevelopment challenges that have remained unresolved for decades. By establishing sustainable financial models, we are ensuring that even the most ambitious urban renewal projects are completed with transparency, speed and long-term viability. This initiative is a reflection of our resolve to drive inclusive urban growth that leaves no community behind.”
The MMRDA project is aimed at transforming one of Mumbai’s oldest and densest slum clusters into a dignified, well-planned residential zone. The project will also feature relevant commercial developments. This comprehensive approach not only addresses the immediate housing needs of the community but also ensures sustainable economic growth for the area.
Frequently Asked Questions
What is the total cost of the slum redevelopment project in Ghatkopar?
The total cost of the slum redevelopment project in Ghatkopar is ₹8,498 crore.
How much of the project cost will be raised through institutional loans?
Rs 3,916 crore of the total project cost will be raised through institutional loans.
Which areas in Ghatkopar will be redeveloped under this project?
The project will redevelop Ramabai Ambedkar Nagar and Kamraj Nagar in Ghatkopar.
What is the significance of the first tranche of the loan from Bank of Maharashtra?
The first tranche of the loan from Bank of Maharashtra, amounting to ₹1,500 crore, represents a significant step towards the financial closure of the project and marks the beginning of Phase 1 implementation.
What is the MMRDA's approach to funding the project?
MMRDA has adopted a diversified funding strategy, with 46 per cent of the funding coming from institutional loans and 39 per cent from internal revenue mechanisms.
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