MMRDA Approves Direct Financial Compensation Policy for Project-Affected People

Mumbai: In a major policy shift aimed at expediting infrastructure development, the Mumbai Metropolitan Region Development Authority (MMRDA) has approved a new financial compensation model for project-affected people (PAP). The policy was cleared during the 159th authority meeting held on Wednesday.

Moving away from the traditional tenement-based rehabilitation method, MMRDA will now offer direct monetary compensation based on the Brihanmumbai Municipal Corporation’s (BMC) 2023 ready reckoner (RR) rates. Residential PAPs will receive a minimum of ₹25 lakh, with compensation varying based on property size and location.

The policy is set to impact over 6,300 PAPs, both residential and commercial, across major infrastructure projects like the Metro network, Mumbai Trans Harbour Link (MTHL), Sewri-Worli Elevated Corridor, and Thane-Borivali Underground Road, under the Mumbai Urban Transport Project (MUTP).

Deputy Chief Minister Eknath Shinde, who also serves as the MMRDA chairman, said the policy “ensures efficient resettlement, avoids legal delays, and will accelerate the timely completion of critical projects.”

MMRDA Commissioner Dr. Sanjay Mukherjee called the policy a "pivotal moment," highlighting that it not only offers flexibility to affected individuals but also supports cost-effective and on-time infrastructure execution, especially for projects backed by international funding like World Bank loans.