_pages-to-jpg-0001.jpg)
The Maharashtra government has approved a major new policy to redevelop Mumbai’s slum clusters, aiming to replace informal settlements with well-planned, integrated housing projects. The decision, cleared by the state cabinet on October 7, marks a major step toward improving living conditions and modernizing the city’s urban landscape.
Under the new scheme, slum clusters spread over more than 50 acres will be redeveloped as single, large-scale projects rather than as small, fragmented ones. Each cluster will be transformed into an integrated housing complex featuring upgraded infrastructure, better sanitation, and improved access to civic amenities.
The initiative will be implemented by the Slum Rehabilitation Authority (SRA) and is expected to accelerate redevelopment while attracting private investment. The Chief Minister’s Office said the move will also generate large-scale employment opportunities in construction and allied sectors.
How the Scheme Will Work
The SRA will identify suitable clusters for redevelopment, with approvals routed through a high-level committee chaired by the Additional Chief Secretary (Housing). Projects can be executed through joint ventures or by private developers, depending on feasibility and scale.
To encourage participation, the government will offer incentives for larger rehabilitation projects. In certain cases, developers will be allowed a Floor Space Index (FSI) higher than 4 to accommodate Project Affected Persons (PAPs) and to relocate residents from non-developable areas such as Coastal Regulation Zones.
Officials added that approved projects will enjoy the same benefits and permissions that integrated housing developments typically receive in Maharashtra, making the process smoother for developers and homebuyers alike.
Developers Welcome the Move
Real estate players in Mumbai have responded positively to the policy, calling it a long-awaited and much-needed reform.
“We welcome the announcement of the Slum Cluster Redevelopment Policy by the State Cabinet,” said Rushi Mehta, Secretary of CREDAI-MCHI, the apex body representing Mumbai’s real estate developers.
He explained that most ongoing slum redevelopment projects are small and scattered, often leading to planning inefficiencies and leaving several areas undeveloped due to low viability. “The new cluster-based approach will help overcome these challenges by enabling integrated development of larger, contiguous areas under a single, well-planned framework,” Mehta said.
A Step Toward a More Livable Mumbai
Developers believe that this policy could significantly reshape Mumbai’s urban fabric. By consolidating small slum pockets into larger redevelopment zones, the city could see more sustainable housing layouts, improved infrastructure, and a better quality of life for its residents.
“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,” Mehta added.
He noted that the government seems to have incorporated lessons from earlier redevelopment models, such as the “3K approvals” policy, which faced hurdles in execution. “We are confident this initiative will become a watershed moment in Mumbai’s journey toward inclusive and dignified rehabilitation of slum dwellers,” he said.
A Push for Inclusive Urban Growth
Experts say the new cluster redevelopment scheme aligns with the state’s larger vision of inclusive growth and housing for all. Mumbai, one of the most densely populated cities in the world, has nearly half of its population living in slums. Previous attempts at redevelopment often struggled due to fragmented plots, lengthy approvals, and financial challenges faced by developers.
By consolidating redevelopment efforts into larger clusters, the new scheme aims to address these long-standing issues. It is expected to not only provide better housing but also create more open spaces, improve road networks, and enhance civic infrastructure like drainage, water supply, and waste management.
If executed effectively, the policy could also strengthen Mumbai’s real estate market by unlocking valuable land parcels currently trapped in unplanned settlements. With developers being offered higher FSI and other incentives, the scheme may attract fresh investments and give a boost to the construction sector.
The cluster redevelopment policy represents a fresh opportunity to reimagine Mumbai’s slum rehabilitation efforts on a much larger and more sustainable scale. However, experts caution that success will depend on effective implementation, transparent approval processes, and cooperation between government agencies, developers, and local communities.
If these factors align, the initiative could pave the way for a cleaner, more organized, and inclusive Mumbai — one that offers dignified housing to all its residents while maintaining the city’s economic dynamism.
