The Maharashtra Cabinet has approved a comprehensive land policy to fast-track the development of the proposed Third Mumbai project. The policy focuses on planned urban expansion in the influence zone of the Mumbai Trans Harbour Link (Atal Setu).
The decision creates a clear framework for land acquisition and allotment. It aims to support residential, commercial, industrial and logistics development across the Mumbai Metropolitan Region (MMR). Authorities expect the move to accelerate infrastructure growth and improve long-term urban planning.
Under the policy, land will primarily be acquired through mutual agreements under the Maharashtra Regional and Town Planning Act, 1966. Compensation may also be provided as per the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013.
Landowners will have multiple compensation options. These include cash payments, Floor Space Index (FSI) benefits, and Transferable Development Rights (TDR). Eligible landowners may also receive a portion of developed land under a land return scheme. Smaller land parcels may be settled through direct monetary compensation.
The policy introduces a pass-through mechanism to manage project funding. Under this model, land acquisition and infrastructure costs can be recovered in instalments from plot beneficiaries. Land may be allotted on an “as-is-where-is” basis. This approach is expected to ensure financial viability for large-scale infrastructure development.
To attract investment, the policy includes provisions for Foreign Direct Investment (FDI). Industries meeting defined investment criteria may receive priority land allotment. The move is aimed at positioning Third Mumbai as a major economic and industrial hub.
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