Maharashtra govt clears new cluster redevelopment plan for Mumbai's slums

The government of Maharashtra on Tuesday approved a new Slum Cluster Redevelopment Scheme for Mumbai, the country's commercial capital, aimed at integrated redevelopment of large slum pockets, dilapidated structures, and old tenanted buildings through the Slum Rehabilitation Authority (SRA).

The decision, taken at a meeting chaired by Chief Minister Devendra Fadnavis, marks a major policy push to accelerate slum clearance and urban renewal in the land-starved city.

Under the new framework, the SRA will act as the nodal agency and identify contiguous land parcels of at least 50 acres, where over 51% of the area is occupied by slums, for redevelopment under the cluster model.

Each cluster will require approval from a high-level committee headed by the Additional Chief Secretary (Housing), followed by state government clearance.

The scheme allows redevelopment to be executed through a joint venture with a government agency, by appointing a private developer through tendering, or by a private developer holding over 40% of the total cluster land. In the case of central government or public sector unit-owned land, inclusion in the scheme will depend on their consent.

Importantly, the policy provides flexibility to merge buildings eligible under other Development Control and Promotion Regulations (DCPR 2034) clauses such as 33(5), 33(7), and 33(9), into the cluster scheme. These structures will receive whichever benefit, under 33(10) or their respective clause, is higher.

Private landowners may also be included with the approval of the high-level committee. They can opt for 50% of their land value as a developed plot with equivalent floor space index (FSI), on the lines of a town planning scheme. If they decline participation, the land may be acquired under the Land Acquisition, Rehabilitation and Resettlement (LARR) Act, 2013, with costs recovered from the project proponent.

The plan also covers slums in Coastal Regulation Zones (CRZ), both Zone I and II. Residents in these zones will be relocated within the cluster redevelopment area, freeing up coastal land for public amenities or saleable development, depending on the zone.

In cases where additional construction potential exists, projects may be allowed to exceed the usual 4 FSI cap, but only for rehousing project-affected persons or for removing untenable slums outside the cluster. Such additional construction will attract incentives under DCPR Regulation 33(10).

The government expects the new cluster approach to ensure integrated, sustainable redevelopment of large slum-dominated areas, while improving living conditions and enabling modern civic infrastructure across Mumbai.