Maharashtra Cabinet Greenlights Land Policy for Third Mumbai Development
The Maharashtra state cabinet, in a significant move on Tuesday, granted approval for a comprehensive land acquisition and allotment policy specifically designed for the proposed Third Mumbai project. This ambitious urban development initiative is slated to emerge within the influence area of the Mumbai Trans Harbour Link, popularly known as the Atal Setu.
Policy Framework and Governing Authorities
This newly sanctioned policy will provide a structured framework for all development projects to be executed by the Navnagar Development Authority, which has been appointed for the Atal Setu influence zone, and by the Mumbai Metropolitan Region Development Authority (MMRDA). Officials emphasized that this decision delivers a concrete and clear direction for planned urbanization, fostering industrial investment, establishing logistics hubs, enabling residential-commercial projects, and driving comprehensive infrastructure development across the Atal Setu impact area.
Legal Basis and Compensation Mechanisms
An official detailed the legal underpinnings, stating, "Under Section 126(1) of the Maharashtra Regional Planning and Town Planning Act, 1966, land acquisition was approved by fixing compensation. This compensation will be determined either by mutual consent through an agreement or as per the provisions of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013."
The official further explained, "Additionally, under Section 126(10), provision has been made for land acquisition by offering compensation in the form of Floor Area Index (FSI) or Transferable Development Rights (TDR) instead of traditional cash payments. There is also provision for additional FSI or TDR to cover necessary facilities and construction works as required."
Key Provisions: Land Refund and Compensation
A cornerstone of the new policy is the implementation of a 22.5% land refund scheme. When acquiring privately owned land through negotiation, the policy mandates providing developed plots to project-affected persons. Under this 22.5% refund scheme, specific guidelines are established: if the area of the plot payable to an affected person is calculated to be less than 40 square meters, then cash compensation will be provided instead of a land plot.
Pass-Through Policy for Industrial Development
Officials stated that a "pass-through policy" was approved with the explicit aim of attracting industries to currently undeveloped areas within the zone. Under this policy framework, the costs associated with land acquisition compensation and subsequent infrastructure development will be recovered from plot holders in manageable instalments.
The financial responsibility is clearly allocated: the allottee, or plot holder, will bear the full cost of land acquisition, registration fees, and establishment fees. The MMRDA will levy a 15% establishment charge. Importantly, MMRDA will not provide pre-developed infrastructure in these specific areas; land will be allotted to eligible project units on an ‘as-is-where-is’ basis. The policy also includes a safeguard, stating that if any additional compensation is required in the future, it will be recovered from the plot holder. A formal agreement outlining all these conditions will be signed between MMRDA and the plot holder.
Incentives for Foreign Direct Investment (FDI)
To aggressively attract foreign direct investment, the policy includes priority allotment of plots for industries bringing FDI into the Atal Setu impact zone, aligning with the broader MIDC (Maharashtra Industrial Development Corporation) policy. However, stringent criteria are attached to these incentives.
Such foreign investors must commit to acquiring a minimum of 100 acres of land. Beyond the land cost, they are required to invest a minimum of Rs 250 crore per 100 acres within a four-year timeframe, with this investment amount explicitly excluding the cost of the land itself. The policy strictly prohibits the sale or transfer of any undeveloped land. For FDI projects, up to 25% of the total developed area may be allocated, subject to meeting specific eligibility criteria and conditions that will be laid down by MMRDA.
Next Steps and Implementation
The MMRDA has now been formally directed to prepare detailed land allotment guidelines in strict accordance with this newly approved cabinet policy and submit them to the state government for final approval. Furthermore, MMRDA has been instructed to develop and present an efficient revenue model. This model must aim to generate maximum revenue for both the state government and MMRDA itself through the strategic development of infrastructure across the Third Mumbai project area.
