State Cabinet Approves 50% Premium Cut for Mumbai Cluster Redevelopment

01 Jun 2023 CW Team

In an effort to promote cluster redevelopment in the city, the state cabinet on Tuesday approved a 50% reduction in premiums.

Deputy CM Devendra Fadnavis, who also oversees the housing portfolio, stated that the premium reduction will be in effect for only one year. "This is to ensure that people promptly come forward with projects for approval. If it is open-ended, the process can be lengthy," he explained. "The aim is to provide Mumbaikars with affordable homes, eliminating the need to seek housing outside the city. With reduced premiums and additional space, Mumbaikars will practically get a home for free in the city."

Domnic Romell, president of CREDAI-MCHI, a representative body for the housing industry, praised the decision, as it discourages fragmented development of standalone buildings lacking proper infrastructure while encouraging cluster redevelopment. "Cluster redevelopment results in wider roads, improved water supply, drainage systems... it ensures the overall improvement of an area's infrastructure," he noted.

Initially launched in 2009 as part of an urban redevelopment scheme for South Mumbai, cluster redevelopment has since expanded to cover all of Mumbai, Navi Mumbai, and Thane. However, it has struggled to gain momentum, with only a few projects in the city, the most notable being the 16-acre Bhendi Bazaar cluster redevelopment project.

Sandip Isore, a consultant for the real estate industry, explained that premiums for all construction projects are currently high. "Many developers are reluctant to take on cluster redevelopment due to financial constraints. This decision will encourage developers to participate as it offers better financial viability," he stated. "The BMC (Brihanmumbai Municipal Corporation) must also ensure speedy approvals, and most importantly, the government needs to build confidence among the people who are the key stakeholders of this project, so that they give their consent."

Also Read
Mangaluru airport completes 2.4km runway recarpeting ahead of schedule
ADB unveils new strategy, prioritising urban schemes in India

In an effort to promote cluster redevelopment in the city, the state cabinet on Tuesday approved a 50% reduction in premiums. Deputy CM Devendra Fadnavis, who also oversees the housing portfolio, stated that the premium reduction will be in effect for only one year. This is to ensure that people promptly come forward with projects for approval. If it is open-ended, the process can be lengthy, he explained. The aim is to provide Mumbaikars with affordable homes, eliminating the need to seek housing outside the city. With reduced premiums and additional space, Mumbaikars will practically get a home for free in the city. Domnic Romell, president of CREDAI-MCHI, a representative body for the housing industry, praised the decision, as it discourages fragmented development of standalone buildings lacking proper infrastructure while encouraging cluster redevelopment. Cluster redevelopment results in wider roads, improved water supply, drainage systems... it ensures the overall improvement of an area's infrastructure, he noted. Initially launched in 2009 as part of an urban redevelopment scheme for South Mumbai, cluster redevelopment has since expanded to cover all of Mumbai, Navi Mumbai, and Thane. However, it has struggled to gain momentum, with only a few projects in the city, the most notable being the 16-acre Bhendi Bazaar cluster redevelopment project. Sandip Isore, a consultant for the real estate industry, explained that premiums for all construction projects are currently high. Many developers are reluctant to take on cluster redevelopment due to financial constraints. This decision will encourage developers to participate as it offers better financial viability, he stated. The BMC (Brihanmumbai Municipal Corporation) must also ensure speedy approvals, and most importantly, the government needs to build confidence among the people who are the key stakeholders of this project, so that they give their consent. Also Read Mangaluru airport completes 2.4km runway recarpeting ahead of schedule ADB unveils new strategy, prioritising urban schemes in India

Infrastructure Urban

06 Apr 2026

InsideFPV Delivers ₹10 Crore Kamikaze Drone Order Under MoD’s EPR Route

InsideFPV, a Surat-based drone technology manufacturer, has successfully executed a ₹10 crore defence contract to supply indigenous kamikaze drones under the Ministry of Defence’s Emergency Procurement Route (EPR). The company completed the delivery of hundreds of FPV kamikaze drone platforms within a rapid two-month timeframe, highlighting its ability to meet urgent military procurement timelines.The supply orders were fulfilled under the emergency procurement mechanism, which is aimed at fast-tracking acquisitions for immediate operational needs. InsideFPV’s quick execution reflects it..

Infrastructure Energy

06 Apr 2026

Vedanta Resources Secures Fitch Upgrade to ‘BB-’, Best Rating Since 2015

Vedanta Resources Limited (VRL), a global player in metals, oil & gas, critical minerals, power and technology, has received a credit rating upgrade from Fitch Ratings, marking its strongest bond rating in over a decade.Fitch has raised Vedanta Resources’ Long-Term Foreign-Currency Issuer Default Rating (IDR) to ‘BB-’ from ‘B+’, while maintaining a Stable Outlook. The agency also upgraded VRL’s senior unsecured rating, along with the ratings of US dollar-denominated bonds issued by Vedanta Resources Finance II Plc and guaranteed by VRL, to ‘BB-’.The upgrade represents Vedan..

Real Estate

06 Apr 2026

NAREDCO NextGen NCR Chapter Launched

The NAREDCO NextGen NCR Chapter was recently launched at Excelerate 2026 in Mumbai, marking a key step towards integrating emerging real estate leaders from the National Capital Region with the national platform. The initiative aims to promote sustainable and responsible urban development through collaboration and knowledge exchange.The event brought together young developers, entrepreneurs, and professionals from across NCR, including Noida, Gurugram, Ghaziabad, Faridabad, Bhiwadi, and Meerut. Discussions focused on urban development, finance, sustainability, innovation, and policy, emphasisi..