Mumbai: The long-pending redevelopment of Abhyudaya Nagar in Kalachowki has gained momentum with three private developers, including Mahindra Group and Oberoi Realty, submitting bids for the project. The Maharashtra Housing and Area Development Authority’s (MHADA) Mumbai board has already begun evaluating the financial and technical qualifications of the applicants.
Spread across 33 acres, the redevelopment of Abhyudaya Nagar’s 48 buildings was first proposed in 2000 but never took off despite multiple attempts. The state government even explored a cluster redevelopment model in 2012, yet progress stalled. In 2024, MHADA invited tenders under its Construction and Development (C&D) model, but after receiving no response, the process was extended seven times and eventually scrapped. A reissued tender also failed to attract bidders.
The deadlock was traced to the size of the replacement homes. The initial plan offered residents 635 sq ft flats, which developers were unwilling to build. Following a decision taken by then Chief Minister Devendra Fadnavis, the apartment size was reduced to 620 sq ft, paving the way for the fresh interest from developers.
Currently, about 3,450 families live in 208 sq ft homes across Abhyudaya Nagar. Under the new plan, MHADA will provide these residents free housing while retaining additional flats for sale in the open market. The authority plans to recover project costs through a lottery-based sale of these homes.
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