MMRDA Launches Landmark Financial Compensation Policy to Fast-Track Mumbai’s Infrastructure Projects

Mumbai, April 3, 2025 — In a transformative move aimed at accelerating Mumbai’s urban infrastructure development, the Mumbai Metropolitan Region Development Authority (MMRDA) has unveiled a comprehensive financial compensation policy for Project-Affected Persons (PAPs). This policy, approved during the 159th Authority Meeting chaired by Deputy Chief Minister Shri Eknath Shinde, aims to replace the traditional tenement-based resettlement approach with direct financial compensation.

Under the visionary leadership of Chief Minister Shri Devendra Fadnavis and Deputy Chief Minister Shri Eknath Shinde, the new policy is set to expedite key projects like the Metro Railway, Mumbai Trans Harbour Link (MTHL), Sewri-Worli Elevated Corridor, and other major urban mobility projects.

A Modern Approach to Resettlement
The policy provides PAPs with the option to receive financial aid instead of relocating to resettlement colonies. This flexible approach is expected to resolve resettlement challenges swiftly, minimizing delays and cost overruns.

For residential PAPs, compensation will be based on the Ready Reckoner Rate (ASR Rate), with a minimum of Rs. 25 lakhs for Category 1 (legal and authorized structures) and Category 2 (squatters and encroachers). Non-residential PAPs will also be compensated based on ASR Rates for ground-floor commercial spaces.

Government Statements
Chief Minister Shri Devendra Fadnavis emphasized, “This policy is a significant step towards transforming Mumbai’s infrastructure, ensuring rapid growth and sustainable development.”

Deputy Chief Minister Shri Eknath Shinde added, “By offering financial compensation, we are reducing delays and facilitating the timely completion of vital projects.”

Dr. Sanjay Mukherjee, Metropolitan Commissioner, MMRDA, noted, “This policy is a pivotal moment for MMRDA’s resettlement approach, enhancing both the quality of life for residents and the efficiency of infrastructure development.”

This progressive policy is expected to accelerate Mumbai’s development, ensuring the city remains a vibrant, modern metropolis poised for future growth.