The Maharashtra cabinet has approved a new cluster redevelopment scheme for Mumbai’s slums, paving the way for a large-scale urban renewal drive aimed at transforming informal settlements into integrated housing projects with modern infrastructure. The decision was taken on 7 October.

Under the initiative, slum clusters spread across more than 50 acres will be redeveloped into planned residential zones featuring improved living standards, enhanced amenities, and upgraded civic facilities. The Slum Rehabilitation Authority (SRA) will be the implementing agency for the project, which aims to accelerate redevelopment, attract private investment, and generate employment in construction and allied sectors.

According to a statement from Chief Minister Devendra Fadnavis’s office, the programme is expected to create significant job opportunities while improving housing and infrastructure quality for thousands of residents.

The government said that the SRA will identify suitable redevelopment clusters, with approvals routed through a high-level committee chaired by the Additional Chief Secretary (Housing). Projects may be executed through joint ventures or private developers, with additional incentives offered for larger rehabilitation schemes.

The policy also permits a Floor Space Index (FSI) exceeding 4 in specific cases to accommodate Project Affected Persons (PAPs) and relocate slum dwellers from restricted or non-developable zones such as Coastal Regulation Areas. Approved projects will enjoy the same incentives as those granted to integrated housing schemes elsewhere in Maharashtra, officials confirmed.

Real estate developers have welcomed the move, calling it a progressive step toward sustainable urban transformation.

“We welcome the announcement of the Slum Cluster Redevelopment Policy by the State Cabinet. At present, numerous fragmented and irregular slum projects face planning inefficiencies and viability challenges. The new cluster-based model will enable integrated development across larger contiguous zones under a unified framework,” said Rushi Mehta, Secretary, CREDAI-MCHI.

He added, “This policy has the potential to transform Mumbai’s urban landscape by promoting sustainable redevelopment, improved infrastructure, and better living conditions. We believe this initiative will mark a defining moment in the city’s journey towards inclusive and dignified rehabilitation of slum communities.”