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The Maharashtra cabinet has approved a detailed land acquisition and allotment policy to support the development of the proposed Third Mumbai region along the Mumbai Trans Harbour Link corridor. The policy enables land procurement through mutual agreement or statutory compensation, offers a 22.5% developed land return to project-affected owners, and introduces a pass-through mechanism to activate undeveloped land parcels. Priority land allotment will be given to large Foreign Direct Investment proposals meeting defined investment and land thresholds, with implementation led by MMRDA and the New Town Development Authority.
The Maharashtra state cabinet has approved a comprehensive land acquisition and allotment framework to facilitate development of the proposed Third Mumbai urban region near the Mumbai Trans Harbour Link, popularly known as Atal Setu. The decision provides a clear policy structure for land procurement, compensation and allotment, which has been a critical requirement for advancing planning and investment activity in the area. Advertisement
As per the approved policy, land required for the project can be acquired either through mutual consent under the Maharashtra Regional and Town Planning Act, 1966, or through compulsory acquisition with compensation determined under the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013. The policy allows flexibility in compensation, offering landowners options such as Floor Space Index (FSI), Transferable Development Rights (TDR), or cash, depending on the nature and size of the land parcel.
A key provision of the policy is the return of 22.5% of developed land to project-affected persons. This return is intended to ensure continued participation of landowners in the region's future growth. For land parcels measuring less than 40 square metres, the policy provides for cash compensation instead of land, recognising the impracticality of land returns for very small holdings.
To address large tracts of undeveloped land, the policy introduces a pass-through mechanism. Under this arrangement, land allotment will be carried out on an as-is-where-is basis, with acquisition, registration and related administrative costs borne by the allottee. Infrastructure development costs will not be initially absorbed by the authorities, and any future additional compensation awarded will be recoverable from the landholder. This approach is aimed at accelerating development without placing immediate financial pressure on public agencies.
The policy also places strong emphasis on attracting Foreign Direct Investment. Land allotment priority will be extended to investors committing a minimum of 100 acres and proposing an investment of at least INR 250 crore, excluding land cost, to be executed within four years. Up to 25% of the developed area may be utilised for eligible FDI-linked activities, while outright sale of undeveloped land has been restricted to prevent speculative holding.
Implementation of the policy will primarily rest with the Mumbai Metropolitan Region Development Authority and the newly established New Town Development Authority. MMRDA has been assigned responsibility for framing detailed allotment guidelines, pricing mechanisms and a revenue model to ensure sustainable funding for infrastructure development associated with the Third Mumbai project.
In addition to this approval, the cabinet also cleared related land and infrastructure measures, reflecting the state's broader focus on coordinated urban expansion and long-term regional planning in the Mumbai Metropolitan Region.
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