by Deepak Sawant 
Mumbai, November 20, 2025 The Maharashtra government has approved and launched an ambitious Slum Cluster Redevelopment Scheme aimed at comprehensive redevelopment of large slum clusters in the Mumbai metropolitan area. The scheme seeks to address the urgent need for planned and sustainable urban renewal following the economic disruptions caused by the COVID-19 pandemic.
The Slum Cluster Redevelopment Scheme, operationalized under the Maharashtra Housing and Area Development Authority (MHADA), targets slum clusters spanning contiguous land areas of 50 acres or more, where over 51% of the land is occupied by slum settlements. This effort marks a strategic shift towards cluster-based redevelopment as opposed to isolated projects, promoting holistic urban restructuring.
Key Features and Objectives
- The scheme identifies large private, government, and semi-government owned land parcels with broken-down, dilapidated buildings, obsolete structures, and widespread slum habitation, aiming for their integrated and scientific redevelopment.
- MHADA will act as the nodal agency, undertaking the demarcation and management of slum clusters.
- It permits ownership rights registration without obstacles for legitimate landlords or structures classified as unsafe, unfit for habitation, or illegally occupied.
- Joint ventures (JV) with private developers will be encouraged, with developers holding up to 40% of the redevelopment area if they provide requisite funding and expertise.
- The scheme also incorporates incentives such as additional Floor Space Index (FSI)/Transferable Development Rights (TDR) to support redevelopment efforts.
- Existing slum rehabilitation projects already in progress will be integrated under this scheme, with clear protocols for tenant rehabilitation and project approvals.
- The scheme explicitly accommodates areas declared under Coastal Regulation Zone (CRZ) I and II, ensuring environmental and legal compliances while allowing in-situ and cluster-based redevelopment.
- It proposes a community hall and public amenities comprising 2% of each rehabilitated building’s area, fostering community development.
- Clear land acquisition norms, tenant compensation, and phased project implementation ensure transparency and stakeholder engagement.
Government Vision and Impact
The Maharashtra government underscores that the Slum Cluster Redevelopment Scheme is critical for achieving planned urban growth and improving living conditions for a large section of Mumbai’s population residing in slums. The scheme promises:
- Enhanced infrastructure with scientific redevelopment that facilitates easier maintenance and better living standards.
- Legal recognition and security of tenure for residents, reducing conflicts and fostering urban stability.
- Integration of slum rehabilitation with overall city planning and development, supporting sustainable city growth.
The scheme was officially ratified in the state cabinet meeting on October 14, 2025, and the government has issued detailed operational guidelines under the Maharashtra Slum (Improvement, Rehabilitation and Redevelopment) Act, 1971.
Conclusion
This Slum Cluster Redevelopment Scheme is a significant policy initiative designed to transform Mumbai’s urban landscape comprehensively. With a focus on sustainable development, social equity, and incentivized private participation, the Maharashtra government aims to create livable, modern neighborhoods from sprawling slum clusters, contributing to the broader vision of a developed and inclusive Mumbai.
The scheme details and guidelines have been made accessible on the Maharashtra government website for public and stakeholder reference.
This article captures the background, objectives, and key facets of the new Slum Cluster Redevelopment Scheme as per the official government documentation dated November 13, 2025
