The Maharashtra cabinet has approved a cluster redevelopment scheme for Mumbai’s slums, paving the way for large-scale urban renewal and improved living standards across the city’s informal settlements. The decision, taken on 7 October, seeks to convert slum clusters spread over more than 50 acres into integrated housing projects equipped with modern infrastructure and better amenities.

To be implemented by the Slum Rehabilitation Authority (SRA), the initiative aims to accelerate redevelopment, attract private investment, and stimulate construction activity. According to a statement from Chief Minister Devendra Fadnavis’s office, the programme is also expected to generate significant employment opportunities in construction and allied industries.

The SRA will identify suitable clusters for redevelopment, with approvals channelled through a high-level committee headed by the Additional Chief Secretary (Housing). Projects may be executed through joint ventures or private developers, who will receive incentives for undertaking larger rehabilitation schemes.

In certain cases, the policy permits a Floor Space Index (FSI) of over 4 to facilitate the accommodation of Project Affected Persons (PAPs) or the relocation of slum dwellers from restricted zones such as Coastal Regulation Areas.

The approval also brings several benefits for developers and homebuyers, aligning these projects with the incentives available under Maharashtra’s integrated housing policy.

Real estate bodies have broadly welcomed the move, describing it as a long-awaited structural reform in Mumbai’s housing landscape.

“We welcome the announcement of the Slum Cluster Redevelopment Policy by the State Cabinet,” said Rushi Mehta, Secretary, CREDAI-MCHI. “Currently, numerous small slum schemes are undertaken on irregular plots, leading to planning inefficiencies and leaving several pockets undeveloped due to viability issues. The new cluster-based approach will overcome these challenges through the integrated development of larger contiguous areas under a single, well-planned framework.”

Mehta added that the initiative could reshape Mumbai’s urban fabric, fostering sustainable redevelopment, modern infrastructure, and improved quality of life for residents. “We are confident this policy will mark a watershed moment in the city’s journey towards inclusive and dignified rehabilitation of slum communities,” he said.

The cluster redevelopment policy is expected to streamline slum rehabilitation, boost private participation, and unlock new opportunities for both developers and residents, ushering in a new phase of equitable urban transformation in Mumbai.