Maharashtra Approves Land Acquisition, Allotment Policy For Mumbai 3.0 Projects
State introduces incentives, compensation models and investor benefits to boost infrastructure and industrial growth.
The Maharashtra government has unveiled a comprehensive land acquisition and allotment policy aimed at accelerating the development of “Mumbai 3.0,” a major urban expansion project anchored around the Atal Bihari Vajpayee Sewri-Nhava Sheva Atal Setu (MTHL) and the upcoming Navi Mumbai International Airport. The policy, formalised through a government resolution (GR), introduces a range of incentives and frameworks to facilitate land procurement and attract investment in the region.
The initiative is designed to streamline development within areas designated under the New Town Development Authority (NTDA), with the Mumbai Metropolitan Region Development Authority (MMRDA) appointed as the nodal agency. The state cabinet approved the policy on February 10, and Chief Minister Devendra Fadnavis highlighted the Mumbai 3.0 vision during his budget speech on March 6, positioning it as a hub for non-polluting industries such as data centres, IT and IT-enabled services, and logistics.
According to the resolution issued by the Urban Development Department, the NTDA will oversee a vast area of approximately 323.44 square kilometres. This includes 124 villages spread across Uran, Panvel, and Pen talukas in Raigad district. However, ecologically sensitive zones such as forest land, Coastal Regulation Zones (CRZ), and a 250-metre buffer around Pen Municipal Council limits have been excluded from the development ambit.
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A key feature of the policy is its focus on balancing infrastructure expansion with the rights of local landowners. Farmers and private landholders who voluntarily surrender land through negotiated agreements will receive 22.5 per cent of the developed land in return, following a model similar to that used by CIDCO. In cases where the entitled developed land is less than 40 square metres, compensation will be provided in cash instead of physical plots.
The policy also outlines alternative compensation mechanisms, including land acquisition through Floor Space Index (FSI) and Transferable Development Rights (TDR). For landowners unwilling to participate voluntarily, the government has retained the option of compulsory acquisition under the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013. Additionally, a high-level committee led by the Additional Chief Secretary has been established to address disputes between authorities and landowners.
To drive economic activity, the government has incorporated strategies inspired by the Maharashtra Industrial Development Corporation (MIDC). Investors bringing foreign direct investment (FDI) will be given priority in land allotment, provided they meet criteria such as acquiring a minimum of 100 acres and committing at least ₹250 crore per 100 acres within four years. A ‘pass-through’ model will allow land to be allotted on an “as-is-where-is” basis, with infrastructure and acquisition costs recovered in instalments. The MMRDA is also authorised to collaborate with land aggregators to develop specialised growth centres, while ensuring a sustainable revenue model for long-term infrastructure returns.
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