In the Maharashtra State Budget 2026-27, Chief Minister Devendra Fadnavis unveiled an ambitious roadmap for urban expansion, projecting that 70 per cent of the state’s population will reside in urban areas by 2047 and contribute nearly 80 per cent of the state’s GDP. The announcement signals a significant shift in urban governance and infrastructure planning across the state.

Central to the budget is a massive expansion of the Metro network to 1,200 km and the expressway network to over 6,000 km. Key projects in Mumbai include Metro Line 11, connecting Wadala to the Gateway of India via a fully underground corridor, estimated to cost Rs 23,487 crore. The plan also envisions the development of a “Third Mumbai,” a 200 sq km urban zone linked to the Atal Setu, covering areas such as Kushmanda and Sai-Chirner, alongside projects like Vadhavan Port and the Mumbai 4 development, expected to generate more than 12 lakh jobs.

In housing, the government introduced a “No New Slum Framework,” aimed at redeveloping 20 lakh slum tenements and constructing 10 lakh affordable housing units within the Mumbai Metropolitan Region. This initiative forms part of a broader strategy to address housing shortages and improve living conditions in urban centres.

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To manage the projected urban growth, Fadnavis announced the establishment of empowered regional development authorities, reducing dependence on centralised municipal control. More than ten such authorities, modelled on the Mumbai Metropolitan Region Development Authority (MMRDA) but with greater fiscal and administrative autonomy, will be set up in regions including Nashik, Chhatrapati Sambhajinagar, and the Solapur-Latur belt. These entities will be developed as “City Economic Regions” rather than merely administrative units.

The budget also promotes the creation of over 20 autonomous industrial and mixed-use townships with simplified land-use regulations to accelerate housing and commercial development. Emphasising technology-driven governance, the government plans to implement AI-based “Digital Twins” for major cities, enabling real-time simulation and management of traffic, water supply, and disaster response. AI and Machine Learning will also be integrated into the Auto DCR system for automated building plan scrutiny and compliance checks.

Long-term targets set by the state include constructing 6 to 7 million affordable housing units by 2047 and ensuring high-speed connectivity between urban centres through expressways and rail corridors. Under the “Viksit Maharashtra” vision, these initiatives aim to transform the state into a seamless, multimodal hub, combining infrastructure, technology, and urban planning to improve living standards and economic productivity.

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