The Mumbai Metropolitan Region Development Authority (MMRDA) has introduced a progressive financial compensation policy.
This new framework aims to streamline the resettlement process for Project Affected Persons (PAPs), thereby expediting the completion of critical projects such as the Mumbai Metro, Mumbai Trans Harbour Link (MTHL), Sewri-Worli Elevated Corridor, and other key urban mobility initiatives. The policy, sanctioned during a high-level authority meeting, marks a significant departure from the traditional tenement-based relocation approach. Instead of mandating physical resettlement in designated colonies, affected individuals will now have the option to receive financial compensation. This shift not only offers greater flexibility but also addresses the practical challenges associated with land acquisition, especially in densely populated urban areas.
Mumbai’s rapid urbanisation has led to the initiation of several large-scale infrastructure projects aimed at decongesting traffic and enhancing connectivity. However, delays due to complex resettlement procedures have hindered progress. The new compensation policy is expected to mitigate these issues, ensuring timely project execution and reducing cost overruns. Under this policy, compensation for residential PAPs will be determined based on Ready Reckoner (ASR) Rates, with variations depending on the category of the affected individual and the area. For Category 1 (legal and authorised structures), a minimum compensation of INR 25 lakh will be provided, with a cap of 1,292 sq. ft. For Category 2 (squatters and encroachers), compensation will be capped at INR 40 lakh, with a payout of 0.75% of the ASR rate.
For non-residential PAPs, compensation will be calculated based on ASR Rates for ground-floor commercial spaces. Authorised and legal structures up to 225 sq. ft. will receive 100% of the ASR rate, while squatters and encroachers will be entitled to 0.75% of the ASR rate. This structured approach aims to ensure fair compensation while maintaining the financial sustainability of the projects. The policy’s introduction comes in response to the challenges faced by ongoing projects such as the Sewri-Worli Elevated Corridor and the Thane (Tikujiniwadi) to Mankhurd-Borivali Underground Road, which are expected to impact approximately 6,300 individuals. Delays due to resistance from PAPs, stemming from the lack of suitable resettlement options, have significantly affected project timelines.
By offering financial compensation, the MMRDA aims to create a more efficient resettlement process, reducing bureaucratic hurdles and expediting project implementation. This approach aligns with the broader goal of enhancing Mumbai’s urban mobility infrastructure, fostering sustainable growth, and supporting the city’s aspirations for zero net carbon emissions. Urban planning experts have welcomed the policy, noting that it reflects a modern, flexible approach to managing resettlement issues in megacities. By prioritising financial support over physical relocation, the policy reduces the social and environmental impact of large infrastructure projects, contributing to more sustainable urban development. Moreover, the policy aligns with Mumbai’s vision of becoming an eco-friendly, gender-neutral, and equitable city. The streamlined resettlement process not only accelerates project delivery but also reduces the environmental footprint associated with large-scale relocations, making it a step towards greener urban living.
Officials within the MMRDA have emphasised that this policy will also help in meeting the stringent timelines set for projects funded through international loans, such as those from the World Bank. By minimising delays, Mumbai can avoid cost overruns and ensure the efficient utilisation of financial resources, which is crucial for maintaining the city’s infrastructure growth trajectory. The policy’s implementation is expected to set a precedent for other metropolitan regions in India, showcasing a model of efficient urban management that balances development with social equity. As Mumbai continues to grapple with the challenges of rapid urbanisation, such progressive measures are pivotal in shaping the city’s future as a global urban hub.
MMRDA Introduces Financial Compensation to Speed Up Mumbai Projects
