October 09, 2025: In a major step toward sustainable urban transformation, the Maharashtra Cabinet has approved two key initiatives — a cluster-based redevelopment plan for Mumbai’s slums and a statewide Sewage Treatment and Reuse Policy, 2025. Together, these policies aim to modernise housing infrastructure and promote resource-efficient water management.
Under the new cluster-based slum redevelopment plan, large land parcels — including slums, old tenanted buildings, dilapidated structures, and vacant plots — will be redeveloped into integrated housing projects with improved roads, drainage, power, and civic amenities. Each cluster must cover at least 50 acres, with over 51% of the land comprising slums or similar structures. The Slum Rehabilitation Authority (SRA) CEO will identify sites, which will then be vetted by a high-level committee led by the Additional Chief Secretary (Housing) before receiving final state approval.
Developers may participate through tenders or joint ventures with government agencies. Private developers owning more than 40% of a cluster can also lead the project upon approval. Land from PSUs or central agencies may be included with consent, and private landowners opting in will receive developed plots equivalent to 50% of their land’s value in FSI. The declining participation may have land acquired under the 2013 Land Acquisition Act, with costs borne by the developer.
In coastal regulation zones (CRZ), slums in CRZ-I will be relocated, while CRZ-II may allow sale units per norms. Officials note that cluster redevelopment offers rational layouts and better infrastructure than piecemeal building projects.
Parallelly, the Sewage Treatment and Reuse Policy, 2025, earmarks ₹500 crore to ensure treated wastewater is reused across 424 urban local bodies for non-potable purposes like industrial use, urban cooling, and agriculture. District and state-level committees will oversee implementation, advancing Maharashtra’s move toward resource efficiency and a circular economy.
Together, these landmark initiatives promise better housing, cleaner cities, and smarter resource management, reshaping how Mumbai and Maharashtra grow.
Source: Times Property
