The Maharashtra cabinet has approved a new land acquisition and allotment policy to fast‑track development of “Third Mumbai” in the influence area of the Mumbai Trans Harbour Link (Atal Setu). The framework will guide urbanisation, industrial clusters, logistics hubs, residential and commercial projects, and related infrastructure within the New Town Development Authority and Mumbai Metropolitan Region Development Authority (MMRDA) zones. By providing a clear, time‑bound process for land assembly and compensation, the policy is expected to unlock large‑scale investment and create new growth centres across the Mumbai Metropolitan Region.
Key elements include acquisition through mutual consent under Section 126(1) of the Maharashtra Regional and Town Planning Act, 1966, or via compensation mechanisms of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013. Landowners may opt for Floor Space Index (FSI) or Transferable Development Rights (TDR) instead of cash, with additional FSI/TDR for amenities. A 22.5 % land‑return scheme will give project‑affected persons developed plots; plots under 40 sq m will receive cash compensation. A “pass‑through” model will recover acquisition and infrastructure costs from allottees, with MMRDA charging a 15 % establishment fee and offering land on an “as‑is‑where‑is” basis.
To attract foreign direct investment, priority allotment will be given to investors bringing at least 100 acres and Rs 250 crore per 100 acres within four years, with up to 25 % of developed area earmarked for such projects. Land aggregators and special purpose vehicles will be invited to develop hubs, and MMRDA will draft detailed allotment rules and a revenue model.
“The decision is expected to provide a clear framework for planned urbanisation, industrial investment, logistics hubs, residential and commercial projects, and infrastructure development in the Atal Setu influence area,” said the Chief Minister’s Office.
