October 08, 2025: The Maharashtra government has approved a new cluster-based slum redevelopment policy for Mumbai, marking a major step toward transforming the city’s informal settlements into planned urban communities. The decision, cleared by the state cabinet on October 7, envisions converting slum clusters spread over 50 acres or more into integrated housing projects with improved infrastructure, amenities, and quality living conditions.
The initiative will be implemented by the Slum Rehabilitation Authority (SRA) and aims to accelerate redevelopment, attract private sector investment, and generate employment in the construction and allied industries. According to a statement from Chief Minister Devendra Fadnavis’s office, the scheme seeks to bring large-scale urban renewal while ensuring inclusive growth for slum dwellers.
Under the new framework, the SRA will identify suitable clusters, with project approvals routed through a high-level committee chaired by the Additional Chief Secretary (Housing). Redevelopment may be undertaken through joint ventures or private developers, and larger projects will receive additional incentives. In select cases, a Floor Space Index (FSI) above 4 will be permitted to accommodate Project Affected Persons (PAPs) or relocate slums from non-developable zones such as Coastal Regulation Areas.
Developers have welcomed the policy, calling it a progressive step for Mumbai’s real estate landscape.
“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,” 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.”
Source: Hindustan Times
