October 13, 2025: The Maharashtra Cabinet has approved a landmark cluster redevelopment policy for slums across Mumbai, paving the way for the city’s largest push yet toward planned, inclusive urban transformation. Announced on October 7, the initiative seeks to redevelop slum clusters exceeding 50 acres into integrated housing zones with modern infrastructure, upgraded civic amenities, and improved living standards.
Implemented through the Slum Rehabilitation Authority (SRA), the policy aims to fast-track redevelopment, draw private investments, and create large-scale employment opportunities in construction and allied industries. According to Chief Minister Devendra Fadnavis’s office, the scheme marks a vital step in achieving equitable and sustainable growth across Mumbai’s urban landscape.
Under the new framework, the SRA will identify eligible clusters, while a high-level committee chaired by the Additional Chief Secretary (Housing) will oversee approvals. Projects may be undertaken through private developers or joint ventures, with incentives for larger rehabilitation efforts. The policy also allows a Floor Space Index (FSI) above 4 in certain cases, facilitating the resettlement of Project Affected Persons (PAPs) and residents from non-developable or Coastal Regulation Zone areas. Developers and homebuyers will enjoy benefits similar to those under Maharashtra’s integrated housing schemes.
Industry leaders have hailed the policy as a game-changer for Mumbai’s real estate and housing ecosystem.
“We welcome the Slum Cluster Redevelopment Policy approved by the State Cabinet. Currently, numerous small, irregular schemes have left large pockets undeveloped due to viability challenges. This cluster-based approach enables integrated, large-scale redevelopment under a single, well-planned framework,” said Rushi Mehta, Secretary of CREDAI-MCHI.
Mehta added, “We believe this will become a watershed moment in the city’s journey towards inclusive redevelopment,” noting its potential to foster sustainable infrastructure, dignified rehabilitation, and an improved quality of life for slum dwellers. Officials expect the initiative to boost investor confidence and rejuvenate Mumbai’s housing market.
Source: Construction World
