The Maharashtra government has sanctioned two key policy measures designed to modernise urban planning and improve sustainability — a statewide wastewater reuse programme and a comprehensive cluster-based slum redevelopment framework for Mumbai.

The newly approved Sewage Treatment and Reuse Policy, 2025, with a financial outlay of Rs 5 billion, will be rolled out through the Urban Development Department across 424 urban local bodies, representing about 48 per cent of the state’s population. The objective is to ensure that treated wastewater is reused for industrial, landscaping, agricultural, and urban utility purposes rather than discharged untreated. A multi-tiered monitoring structure has been created — district-level committees headed by collectors or municipal commissioners, and a state-level steering group chaired by the Chief Secretary — to ensure consistent execution. This initiative is expected to help urban centres conserve fresh water resources and adopt a circular-use model for sustainable growth.

In a separate decision, the Cabinet also endorsed a cluster redevelopment policy under the Slum Rehabilitation Authority (SRA), which replaces the piecemeal, plot-by-plot model with a consolidated redevelopment approach. Eligible clusters must cover at least 50 acres and have over 51 per cent slum occupancy. Identification will be done by the SRA Chief Executive Officer and vetted by a high-level housing committee before final clearance by the state.

The redevelopment may proceed through three routes — collaboration with a public agency, tendering to private developers, or approval to a developer holding more than 40 per cent of the land in the cluster. Private landowners can participate and obtain developed plots worth roughly half the value of their property in Floor Space Index (FSI) terms. If they choose not to participate, the land can be acquired under the Land Acquisition Act, 2013, with costs borne by the developer.

For Coastal Regulation Zone (CRZ) regions, the framework distinguishes between categories: slum clusters in CRZ-I will be shifted and the area repurposed for public infrastructure, while those in CRZ-II may include saleable components as per the Development Control and Promotion Regulations, 2034. The state has also allowed enhanced FSI limits — up to four or beyond — exclusively for rehabilitation housing or project-affected families. Central or PSU-owned parcels may be integrated with their consent.

Together, these measures aim to promote systematic redevelopment, equitable rehabilitation, and efficient resource management, signalling Maharashtra’s push toward a more resilient and environmentally responsible urban framework.