Maharashtra Clears New Policy For Iconic City Development

21 Nov 2025 CW Team

CIDCO currently allots land parcels on a lease basis through auctions, enabling projects to be constructed in line with lease conditions and the Development Control and Promotion Regulation 2020. However, the state noted that in several areas where multiple construction and development operators hold land, integrated township-style planning is not feasible.

To address this, CIDCO drafted a policy for concept-based iconic city development, which has now received cabinet approval. The policy prioritises optimal utilisation of land parcels held by CIDCO and various authorities, allowing them to appoint City Development Operators (CDOs) through a tendering process. These operators will be empowered to develop integrated residential townships or international commercial districts, with corresponding development rights and the ability to sell residential and commercial units.

The cabinet also approved a new policy for integrated group redevelopment of MHADA colonies measuring 20 acres or more in Mumbai and its suburbs. MHADA built 56 colonies for Middle-Income Group and Low-Income Group families between 1950 and 1960, covering around 5,000 cooperative housing societies. Many of these buildings are now dilapidated or structurally weak, necessitating redevelopment.

Under the new policy, MHADA will redevelop large layouts into modern housing complexes equipped with lifts, adequate parking, parks, community halls, playgrounds, gyms, swimming pools and CCTV systems. Supporting infrastructure—such as water supply, sewage networks, electricity and internal roads—will also be upgraded with emphasis on environmental sustainability. Residents will receive larger homes than their existing tenements.

The policy permits the highest allowable rehabilitation FSI without requiring occupant consent. However, developers appointed through the tendering process must secure resolutions of support from housing societies. A high-powered committee headed by the Additional Chief Secretary will oversee implementation.

The Maharashtra cabinet has approved a policy for concept-based iconic city development to ensure more efficient use of land held by CIDCO and other authorities. It has also cleared a comprehensive redevelopment policy for several MHADA colonies. The decisions were taken at a meeting chaired by Chief Minister Devendra Fadnavis, an official release said. CIDCO currently allots land parcels on a lease basis through auctions, enabling projects to be constructed in line with lease conditions and the Development Control and Promotion Regulation 2020. However, the state noted that in several areas where multiple construction and development operators hold land, integrated township-style planning is not feasible. To address this, CIDCO drafted a policy for concept-based iconic city development, which has now received cabinet approval. The policy prioritises optimal utilisation of land parcels held by CIDCO and various authorities, allowing them to appoint City Development Operators (CDOs) through a tendering process. These operators will be empowered to develop integrated residential townships or international commercial districts, with corresponding development rights and the ability to sell residential and commercial units. The cabinet also approved a new policy for integrated group redevelopment of MHADA colonies measuring 20 acres or more in Mumbai and its suburbs. MHADA built 56 colonies for Middle-Income Group and Low-Income Group families between 1950 and 1960, covering around 5,000 cooperative housing societies. Many of these buildings are now dilapidated or structurally weak, necessitating redevelopment. Under the new policy, MHADA will redevelop large layouts into modern housing complexes equipped with lifts, adequate parking, parks, community halls, playgrounds, gyms, swimming pools and CCTV systems. Supporting infrastructure—such as water supply, sewage networks, electricity and internal roads—will also be upgraded with emphasis on environmental sustainability. Residents will receive larger homes than their existing tenements. The policy permits the highest allowable rehabilitation FSI without requiring occupant consent. However, developers appointed through the tendering process must secure resolutions of support from housing societies. A high-powered committee headed by the Additional Chief Secretary will oversee implementation.

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