The Maharashtra cabinet on 7 October approved a cluster redevelopment scheme for slums across Mumbai, marking a major policy move aimed at transforming the city’s informal settlements into planned housing zones. The initiative seeks to redevelop slum clusters spanning over 50 acres into integrated housing projects featuring upgraded infrastructure, improved living standards, and better civic amenities.

To be implemented by the Slum Rehabilitation Authority (SRA), the programme aims to accelerate redevelopment, attract private investment, and generate employment in the construction and allied sectors. According to a statement from Chief Minister Devendra Fadnavis’s office, the scheme represents a crucial step towards achieving inclusive urban growth in Mumbai.

Under the policy, the SRA will identify eligible slum clusters, with project approvals managed by a high-level committee headed by the Additional Chief Secretary (Housing). Redevelopment may be carried out through joint ventures or private developers, and larger rehabilitation projects will be incentivised.

In certain cases, the policy allows a Floor Space Index (FSI) exceeding 4 to accommodate Project Affected Persons (PAPs) or relocate residents from non-developable zones, including Coastal Regulation Areas. Developers and homebuyers participating in these projects will also receive the same benefits available to integrated housing developments in Maharashtra.

Industry experts have welcomed the move as a transformative step for Mumbai’s real estate and housing landscape.

“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 that the initiative could reshape Mumbai’s urban fabric, promoting sustainable infrastructure, dignified rehabilitation, and a better quality of life for residents. “We believe this will become a watershed moment in the city’s journey towards inclusive redevelopment,” he said.

Officials believe the policy will not only improve living standards for slum dwellers but also stimulate construction activity, strengthen investor confidence, and revitalise Mumbai’s housing ecosystem.