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The Mumbai Metropolitan Region Development Authority (MMRDA) is set to introduce a financial compensation policy to accelerate the resettlement process for Project-Affected Persons (PAPs) involved in key urban infrastructure developments. This initiative, approved during the 159th MMRDA meeting chaired by Deputy Chief Minister Shri Eknath Shinde, aims to replace the traditional tenement-based resettlement model with direct financial aid. The policy aligns with Brihanmumbai Municipal Corporation (BMC) guidelines and applies to major projects, including the Metro, Mumbai Trans Harbour Link (MTHL), and the Sewri-Worli Elevated Corridor. Compensation will be determined based on Ready Reckoner Rates (ASR Rates), ensuring fair settlements and reducing project delays. By adopting this approach, MMRDA seeks to streamline resettlement, prevent legal complications, and facilitate the timely completion of infrastructure projects crucial for Mumbai's growth.
The Mumbai Metropolitan Region Development Authority (MMRDA) is set to implement a significant financial compensation policy to address resettlement challenges for PAPs. This measure was sanctioned during the 159th Authority Meeting chaired by Deputy Chief Minister Shri Eknath Shinde, with the objective of expediting the completion of crucial infrastructure projects such as the Metro, Mumbai Trans Harbour Link (MTHL), Sewri-Worli Elevated Corridor, and other urban mobility initiatives. Advertisement
As part of the Mumbai Urban Transport Project (MUTP), the new framework will replace the conventional tenement-based relocation process with financial compensation. This policy aims to provide affected individuals with the option of receiving financial aid instead of resettling in designated colonies, ensuring a more practical and flexible solution for all stakeholders.
MMRDA has undertaken several major projects, including the Santa Cruz-Chembur Link Road (SCLR), Jogeshwari-Vikhroli Link Road (JVLR), Metro, Monorail, and the Versova-Virar Coastal Road. Ongoing developments such as the Sewri-Worli Elevated Corridor and the Thane (Tikujiniwadi) to Mankhurd-Borivali Underground Road are expected to impact approximately 6,300 individuals. Due to a shortage of available tenement spaces near the affected areas, some PAPs have resisted relocation, leading to delays in project execution.
In response, MMRDA has proposed adopting a similar financial compensation policy to that outlined in the BMC circular issued earlier. This policy will be applicable across various large-scale infrastructure projects under the MUTP framework.
Compensation will be determined based on Ready Reckoner Rates (ASR Rates) and will vary depending on the category of the affected individual and the area. A minimum compensation of INR 25 lakh will be provided to PAPs in Category (1) legal and authorised structures and Category (2) squatters and encroachers. While Category 2 will be subject to a cap of INR 40 lakh, Category 1 has a limit of 1,292 sq. ft. Compensation will be awarded at 100% of the RR rate for authorised and legal structures, whereas squatters and encroachers will receive 0.75% of the RR rate.
Compensation for non-residential PAPs will be based on Ready Reckoner Rates (ASR Rates) for ground-floor commercial spaces. For eligible areas up to 225 sq. ft., authorised and legal structures will receive compensation at 100% of the RR rate, while encroachments and squatters will be entitled to 0.75% of the RR rate.
This policy is designed to ensure adequate compensation for affected individuals while preventing legal disputes and further project delays. By implementing this approach, MMRDA aims to complete essential projects funded through World Bank loans and other financial resources within the stipulated timelines, thereby avoiding cost overruns and ensuring Mumbai's infrastructure development proceeds as planned.
Chief Minister Shri Devendra Fadnavis remarked that through this financial compensation policy, the government is taking a significant step towards transforming Mumbai's infrastructure. He highlighted that prioritising timely project completion while minimising disruptions will contribute to the city's rapid growth and development. He noted that this progressive approach would not only enhance connectivity but also deliver long-term economic benefits for Maharashtra, paving the way for a more sustainable and prosperous future.
Deputy Chief Minister Shri Eknath Shinde stated that the policy would enable efficient resettlement, reducing unnecessary delays in critical urban infrastructure projects. He emphasised that by offering financial compensation, MMRDA is transitioning towards a more modern and flexible model that will accelerate the delivery of essential projects, including the Sewri-Worli Elevated Corridor and Metro lines, ensuring they are completed within the specified deadlines.
Metropolitan Commissioner Dr Sanjay Mukherjee acknowledged the policy's approval as a pivotal moment in MMRDA's approach to resettlement. He pointed out that by introducing a more flexible and efficient mechanism, MMRDA is not only alleviating the burden on affected individuals but also ensuring the timely completion of Mumbai's critical infrastructure projects. He stressed that this progressive step would enhance the quality of life for Mumbai's residents while enabling the city to meet the demands of its rapid urban expansion.
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