MMRDA’s new policy to offer direct monetary compensation to people affected by infra projects

The new financial compensation policy aims to streamline resettlement for 6,300 PAP by replacing tenement-based rehabilitation with direct monetary compensation. Residential PAP will receive a minimum of Rs 25 lakh, depending on property size and location.

The policy applies to both residential and commercial structures and covers major projects under the Mumbai Urban Transport Project (MUTP), including the Metro network, Mumbai Trans Harbour Link (MTHL), Sewri-Worli Elevated Corridor, and Thane-Borivali Underground Road.

Deputy Chief Minister Eknath Shinde, also the chairman of MMRDA, said, “The policy will allow for efficient resettlement, reducing unnecessary delays in crucial urban infrastructure projects. By offering financial compensation, MMRDA is moving towards a modern and flexible model that will speed up the delivery of key projects, such as the Sewri-Worli Elevated Corridor and Metro line projects, ensuring that these crucial initiatives are completed within the stipulated timelines.”

MMRDA stated that the policy ensures fair compensation for affected individuals, prevents delays and legal disputes over tenement space, and streamlines resettlement. It helps complete key projects—funded through World Bank loans and other financial sources—on time, avoids cost overruns, and supports Mumbai’s infrastructure growth, MMRDA added.

Dr Sanjay Mukherjee, metropolitan commissioner of MMRDA, said, “The approval of this policy marks a pivotal moment for MMRDA’s approach to resettlement. By offering a flexible and efficient solution, we are not only easing the burden on project-affected individuals but also ensuring the timely completion of Mumbai’s critical infrastructure projects.”