Maharashtra Govt Proposes 10 Percent Extra Area in Self Redevelopment Housing Plans

Maharashtra government is considering a proposal to offer 10 percent additional carpet area to residents of cooperative housing societies undertaking self-redevelopment. The recommendation, submitted by a state-appointed committee to senior officials at Vidhan Bhavan, marks a significant policy shift intended to accelerate stalled projects and reduce the dependence on private developers.

Self-redevelopment allows societies to independently execute redevelopment using their own funds or bank financing, thereby retaining both development rights and project profits. The proposed incentive is seen as a mechanism to boost confidence among societies wary of financial and technical challenges. If approved by the state cabinet, the measure could unlock large-scale transformations in Mumbai and other urban centres where vertical growth has outpaced civic infrastructure and housing affordability. The recommendations also extend to cluster self-redevelopment—an alternative to conventional cluster redevelopment—allowing neighbouring societies to jointly redevelop their land. In a notable shift, the required minimum plot size for such joint ventures has been proposed at 2,000 square metres, half the threshold mandated for regular cluster redevelopment. The new framework guarantees a minimum of 376.73 square feet to each residential occupant, while non-residential units will receive equivalent reconstructed space. Slum households will be eligible for a minimum of 300 square feet.

The panel has urged the state to facilitate financing by allowing land and sale components of such projects to be mortgaged with the apex state cooperative bank, with support from agencies like NABARD and HUDCO. Experts noted that streamlining finance access is critical for the viability of these projects, especially when slum redevelopment is included. Furthermore, the report recommends the formation of a dedicated Slum Self-Redevelopment Authority to manage and implement slum-based projects. A key demand is that slum cooperative societies be granted ownership rights over their land—whether owned by the state, Centre, or semi-governmental agencies. The scheme is also expected to be aligned with the PM Awaas Yojana for broader central support.

For Metro Line 3’s impact zone, the committee recommends that all at-risk structures on either side of the underground alignment be declared project-affected and be prioritised for redevelopment under new Development Control and Promotion Regulations (DCPR-2034). Urban housing experts view this as a progressive step that empowers communities, brings transparency, and reduces speculative real estate activity. If implemented with accountability and policy consistency, the incentive scheme could provide a replicable model for other Indian cities grappling with ageing infrastructure and rising housing demand.

Maharashtra Govt Proposes 10 Percent Extra Area in Self Redevelopment Housing Plans