Mumbai: The Maharashtra Cabinet on Tuesday approved a comprehensive policy governing land acquisition and allocation for the planned development of the proposed ‘Third Mumbai’ near Navi Mumbai, covering the influence zone of the Atal Bihari Vajpayee Sewri–Nhava Sheva Atal Setu (Mumbai Trans Harbour Link). The decision, taken at a meeting chaired by Chief Minister Devendra Fadnavis, is expected to provide strong momentum to planned urbanisation, industrial investment, logistics infrastructure, and residential and commercial expansion across the Mumbai Metropolitan Region (MMR).
Policy to Guide Navnagar, MMRDA Projects
The policy will guide land acquisition and development activities to be undertaken by the designated Navnagar Development Authority as well as the Mumbai Metropolitan Region Development Authority (MMRDA) for future projects in the corridor. Officials said the move would create a structured framework for infrastructure creation and unlock new growth centres linked to the Atal Setu connectivity.
Land acquisition under the new framework will be carried out either through mutual agreement under provisions of the Maharashtra Regional and Town Planning Act, 1966, or by determining compensation in accordance with the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013. In addition to monetary compensation, the government has allowed the use of Floor Space Index (FSI) and Transferable Development Rights (TDR)—including additional FSI or TDR for amenities and construction—providing flexibility in compensating landowners.
22.5% Land Return for Private Owners
A 22.5 per cent land return policy will apply to privately owned land acquired through negotiation, in line with earlier urban development resolutions. Where the entitlement of a developed plot under this return scheme is less than 40 square metres, compensation will instead be provided in cash.
To promote industrialisation in currently undeveloped areas, the Cabinet has also approved a pass-through model, under which the cost of land acquisition and infrastructure development will be recovered from plot holders in instalments, along with registration and establishment charges. MMRDA will levy establishment charges, while land will be transferred on an “as-is-where-is” basis, without direct infrastructure provisioning by the authority. Any future increase in compensation liability will also be recoverable from the landholder through formal agreements with MMRDA.
FDI-Linked Industries Get Priority Allotment
In a bid to attract foreign direct investment (FDI), industries bringing overseas investment into the Atal Setu influence zone will receive priority land allotment in line with MIDC norms. Such projects will be required to acquire a minimum of 100 acres and invest at least Rs 250 crore per 100 acres within four years, excluding land cost. Undeveloped land will not be permitted for resale or transfer, and up to 25 per cent of the developed area may be allocated for FDI-linked activity, subject to eligibility criteria set by MMRDA.
The government has also directed MMRDA to invite proposals from land aggregators for development through Special Purpose Vehicles (SPVs) on a partnership basis, prepare detailed land-allocation regulations for approval, and design a revenue model that maximises returns to both the state government and the planning authority through infrastructure-led growth.
Officials said the policy would significantly accelerate the emergence of the Third Mumbai as a major urban-industrial hub, enabling planned expansion of the Mumbai Metropolitan Region and creating new opportunities for investment, logistics, housing, and employment in the coming years.
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