Written by Vallabh OzarkarMumbai | Updated: October 8, 2025 12:21 AM IST 4 min readOfficials said the cluster approach is expected to ensure planned layouts, rational use of infrastructure and better living conditions compared to piecemeal redevelopment of individual plotsThe Maharashtra Cabinet on Tuesday approved two significant policies — a cluster-based redevelopment plan for Mumbai’s slums under the Slum Rehabilitation Authority (SRA) and a statewide sewage treatment and reuse policy aimed at promoting a circular economy and efficient water use.According to officials, the cluster redevelopment scheme, to be implemented by the Brihanmumbai Slum Rehabilitation Authority as the nodal agency, seeks to bring a coordinated and scientific approach to redeveloping large stretches of slum land spread across Mumbai. It covers areas comprising slums, old and dilapidated structures, tenant-occupied buildings and vacant plots unsuitable for construction, with the objective of providing integrated housing and upgraded civic infrastructure.Officials said under the scheme, land parcels with a contiguous area of at least 50 acres — where more than 51 per cent of the land is occupied by slums — will be eligible for redevelopment.Story continues below this adThe Chief Executive Officer of SRA will identify such clusters, which will then be vetted by a high-level committee chaired by the Additional Chief Secretary (Housing) before final approval by the state government.The redevelopment can be undertaken either through a joint venture involving a government agency, by appointing a private developer through a tender process, or by permitting a developer who already holds over 40 per cent of the cluster land, subject to government approval. The policy also allows inclusion of central government or PSU lands, provided the respective authorities consent.Private landowners may participate in the scheme with prior permission of the high-level committee. They may be offered developed plots with equivalent floor space index roughly equal to 50 per cent of their land value, on the lines of a Town Planning Scheme. If such an offer is refused, the land may be acquired under the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013, with acquisition costs to be borne by the developer.For areas affected by Coastal Regulation Zones, slum clusters in CRZ-I will be relocated and the vacated land will be used for public amenities, while in CRZ-II areas, developers will be allowed to build sale components as per the Development Control and Promotion Regulations, 2034. The policy further provides for granting floor space index up to four or higher, wherever feasible, solely for the rehabilitation of slum dwellers or project-affected persons, with incentives under Regulation 33(10) or any other provision offering greater benefit.Story continues below this adOfficials said the cluster approach is expected to ensure planned layouts, rational use of infrastructure and better living conditions compared to piecemeal redevelopment of individual plots.In another key decision, the Cabinet also approved the Sewage Treatment and Reuse Policy, 2025, to be implemented by the Urban Development Department with a budgetary provision of Rs 500 crore.The policy aims to promote reuse of treated sewage water across the state’s 424 urban local bodies, which together account for nearly 48 per cent of Maharashtra’s population.With rising urban water demand and limited freshwater sources, the state has framed a policy to treat and recycle wastewater for non-potable uses such as thermal power generation, industrial processes, urban applications and agricultural irrigation.Story continues below this adA district-level coordination committee headed by the collector or municipal commissioner will monitor implementation, while a state-level steering committee chaired by the chief secretary will oversee overall progress. The move is expected to encourage industries and civic bodies to adopt treated wastewater and help Maharashtra move towards a more resource-efficient and circular urban economy.Stay updated with the latest - Click here to follow us on Instagram© The Indian Express Pvt LtdTags:Maharashtra cabinetSlum Rehabilitation Authority