Mumbai: The Kamathipura Cluster Redevelopment Project has moved a step closer to ground-level implementation with MHADA signing a Construction & Development Agency (C&DA) agreement with Bhagirathi Housing Pvt. Ltd. and Mathi Developers on Thursday. Physical work on the long-awaited redevelopment is scheduled to commence on the occasion of Diwali.
Redevelopment moves to implementation
The agreement was signed at the MHADA headquarters in Bandra in the presence of MHADA Vice President and CEO Sanjeev Jaiswal and other officials.
The project is being implemented by the MBRRB under Regulation 33(9) of DCPR-2034, with MHADA designated as the nodal agency as well as the Special Planning Authority (SPA).
Jaiswal said the signing of the C&DA agreement marked the transition of the project from planning to implementation, with the redevelopment aimed at providing safer housing and modern infrastructure while retaining Kamathipura’s historic character.
Details of cluster project
The cluster redevelopment will cover approximately 34 acres across Lanes 1 to 15, comprising around 475 cessed and 259 non-cessed buildings. The project has around 8,001 residential and commercial tenants/residents, including approximately 6,625 residential and 1,376 non-residential occupants, besides nearly 800 landowners.
The integrated approach has been adopted considering the area’s nearly century-old buildings, dense population, narrow roads and inadequate infrastructure. MHADA said the small and narrow plots make cluster-based redevelopment more suitable than taking up buildings individually.
Under the project, eligible residential tenants will receive 500 sq ft rehabilitation flats, while commercial occupants will also be rehabilitated. The project is expected to make around 44,000 sq m of housing stock available to MHADA, through which approximately 900 additional housing units are proposed.
Financial support during redevelopment
MHADA has also approved financial measures for affected occupants during redevelopment. Residents will receive two years’ advance rent along with cheques for the subsequent one year, besides a one-time Rs 25,000 shifting allowance.
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For commercial occupants, monthly rent has been fixed at Rs 25,000 for premises up to 200 sq ft, Rs 30,000 for 200-400 sq ft and Rs 35,000 for premises above 400 sq ft. Landowners will receive Rs 25,000 per plot per month during the redevelopment period.
The tender process for appointing the C&DA was initiated in June 2025, while the state government approved the appointment of developer in April this year.
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