Mumbai: The blueprint for building a “Third Mumbai” within Maharashtra—after Mumbai and Navi Mumbai—is moving towards implementation, with the state government having finalised a land acquisition and distribution policy for the proposed 323.44-square km region.
The ambitious project has been planned by the Mumbai Metropolitan Region Development Authority (MMRDA), and will be executed by the New Town Development Authority, appointed by MMRDA, in the Atal Setu influence area.
The state government issued a government resolution Monday, outlining the land acquisition policy, which involves developing land and handing over a part of it to original owners.
“A 22.5 percent of the developed land goes to project-affected landowners. But if the land due under this refund scheme is less than 40 sq mts, then direct cash compensation would be given,” the GR states.
It further added that a pass-through policy will be implemented for industrial use of undeveloped land.
Under this policy, the cost of land acquisition, compensation and infrastructure development will be recovered from the industry allottees in installments, with MMRDA levying a 15 percent establishment charge, said the GR.
“To attract foreign direct investment (FDI), industries bringing in FDI to the Atal Setu influence area will be given priority in land allotment, in line with the MIDC (Maharashtra Industrial Development Corporation) policy. However, such investors must acquire a minimum of 100 acres of land and invest at least Rs 250 crore per 100 acres within four years, excluding land cost,” the GR states.
According to the land allocation policy, up to 25 percent of the total developed area will be allowed for FDI projects, subject to eligibility criteria and conditions laid down by the MMRDA.
To oversee the implementation of land acquisition policy, the urban development department has appointed a high-level committee.
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Third Mumbai
The state Cabinet approved the land acquisition and distribution policy last month. The ‘Third Mumbai’ project is considered a pet project of Chief Minister Devendra Fadnavis.
While announcing the project, Fadnavis had said in December 2024 that the ‘Third Mumbai’ will be “three times bigger than Mumbai and the country’s next business capital”.
While announcing its budget last month, the MMRDA presented a vision to push for the urban development of this third Mumbai in the Karnala-Sai-Chirner (KSC) New Town, in the Atal Setu influence area.
Out of Rs 4,600 crores allocated for various projects, the MMRDA has earmarked Rs 4,000 crore for the Third Mumbai project.
According to the budget document, the ‘Mumbai 3.0’ is aimed at decongesting Mumbai by creating planned urban nodes with integrated economic, residential and employment ecosystems.
The KSC New Town is positioned as the next major urban frontier in the Mumbai Metropolitan Region, intended to attract investment and generate employment while supporting structured development in adjoining districts.
The construction of Atal Setu has significantly reduced the travel time between Mumbai and Navi Mumbai, and it now takes just a little over 20 minutes. The improved connectivity will create new opportunities.
Against this backdrop, the MMRDA appointed the Navanagar (New Town) Development Authority to oversee development across 323.44 sq km area in Panvel, Pen and Uran talukas of Raigad district.
Smaller allocations, such as Rs 500 crore for the Raigad Pen Growth Centre and Rs 100 crore for the Kharbav Integrated Business Park, signal the operationalisation of a new phase of regional expansion beyond Mumbai’s saturated core.
(Edited by Ajeet Tiwari)
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