Maharashtra Cabinet Approves Land Acquisition & Allocation Policy for KSC New Town (Third Mumbai)

What the Cabinet decided

On 10 February 2026, the Maharashtra Cabinet, chaired by Chief Minister Devendra Fadnavis, approved the land acquisition and land allocation policy for future development projects to be implemented by the Karnala-Sai-Chirner (KSC) New Town Development Authority (NTDA) and MMRDA in the Atal Setu influence area.

The Maharashtra Cabinet chaired by Chief Minister Devendra Fadnavis on Tuesday, in a bid to push the development of the much ambitious Mumbai 3 project, approved the land acquisition and land allocation policy for future development projects implemented by the Karnala-Sai-Chirner (KSC) New Town Development Authority (NTDA) in the area designated for the impact area of the Atal Bihari Vajpayee Sewri-Nhava Sheva Atal Setu project as well as the Mumbai Metropolitan Region Development Authority (MMRDA).

The area affected is large: the KSC NTDA project covers a massive 323.44 square kilometre area across 124 villages in the Uran, Panvel, and Pen talukas. This builds on the state's earlier notification appointing MMRDA as New Town Development Authority: Government of Maharashtra, by notification dated 15th October 2024, has appointed MMRDA as New Town Development Authority (NTDA) for 124 villages in Uran, Panvel and Pen Tehsil in Raigad District of Maharashtra, and the designated area is named 'K.S.C. New Town'.

The Cabinet's approval-in-principle on 10 February 2026 was followed by the formal Government Resolution. According to MMRDA's own status page, the Government of Maharashtra vide Government Resolution dated 16/03/2026 approved the Land Acquisition and land Allocation policy for New Town Development Authority and future projects implemented by MMRDA. Independent reporting places the GR's issuance a day later, describing the state government issued a comprehensive Government Resolution (GR) regarding land acquisition on Tuesday, March 17, 2026 — the small date gap likely reflects when the document was signed versus when it was made public.

Compensation and land-return terms

The policy shifts away from pure compulsory acquisition toward a land-pooling partnership model modelled on CIDCO's Navi Mumbai approach. According to the MMRDA's Land Acquisition and Allocation Policy, the government is moving away from purely compulsory acquisition in favor of a partnership model, and following the CIDCO model used in Navi Mumbai, the GR offers consenting landowners 22.5% of the developed land back in exchange for their raw plots.

For very small entitlements, cash replaces the land swap: 'A 22.5 percent of the developed land goes to project-affected landowners. But if the land due under this refund scheme is less than 40 sq mts, then direct cash compensation would be given,' the GR states.

Owners who do not opt into land pooling have other routes. For those not opting for land pooling, the GR provides three other avenues, including direct cash compensation as per the LARR Act, 2013 at prevailing market rates. Some coverage also references floor space index (FSI) and transferable development rights (TDR) as alternative compensation forms under the same GR.

The compensation level has drawn comparison with the neighbouring NAINA project. A local landowners' representative pointed out that while landowners in the NAINA project are entitled to receive 40 per cent of developed plots, the proposed Third Mumbai policy currently provides 22.5 per cent, making policy clarity an important concern.

Exemptions and boundary limits

The policy explicitly carves out certain categories of land from the acquisition/allocation framework. Specific exemptions have been made for forest lands, Coastal Regulation Zones (CRZs), and a 250-metre buffer zone around the Pen Municipal Council.

These exemptions matter because the broader KSC New Town boundary sits within a wider notified area. Separately, vide notification dated October 15, 2024, two villages adjacent to Pen Municipal Council partially, and seven villages fully, of the Pen taluka of Raigad district have been included in the notified K.S.C. New Town.

'Pass-Through' policy for industrial land

To speed up industrial land allotment ahead of full infrastructure build-out, the GR imports a mechanism from MIDC. To ensure the new town becomes an industrial hub, the MMRDA is integrating two key policies from the Maharashtra Industrial Development Corporation (MIDC): the 'Pass-Through' Policy allows for rapid industrial allotment in undeveloped areas where the land is provided on an 'as-is-where-is' basis, and the industry bears all costs for acquisition and measurement, along with a 15 per cent establishment fee.

Cost recovery is staged over time rather than paid upfront in one instalment. Under this policy, the cost of land acquisition, compensation and infrastructure development will be recovered from the industry allottees in installments, with MMRDA levying a 15 percent establishment charge.

FDI priority policy

The GR also creates a fast-track allocation route for foreign-funded projects. The Foreign Direct Investment (FDI) Priority Policy aims to boost the national GDP and local employment, with FDI being prioritised.

Eligibility carries minimum size and investment thresholds. Per the GR text quoted in reporting, 'To attract foreign direct investment (FDI), industries bringing in FDI to the Atal Setu influence area will be given priority in land allotment, in line with the MIDC (Maharashtra Industrial Development Corporation) policy. However, such investors must acquire a minimum of 100 acres of land and invest at least Rs 250 crore per 100 acres within four years, excluding land cost,' the GR states. (Some wire reports cite a five-year investment window rather than four; readers should treat the GR text as the primary reference pending its public release.) A ceiling applies to how much of the town can go to such investors: a maximum of 25 per cent of the total developed area is reserved for such investments.

Practical effect: what happens next

The policy is the legal and financial mechanism that lets MMRDA/NTDA actually start acquiring, developing and allotting land in KSC New Town, rather than a master plan itself. Following the GR, the authority moved to on-the-ground implementation steps: online consent collection from landowners, drone/LiDAR survey work, and master-plan preparation are proceeding in parallel. A Singapore-based planning consultancy has been engaged for the blueprint: the master plan for KSC New Town is expected to be finalised by August 2026, while drone mapping and LiDAR surveys required for planning have already been completed, and the Urban Development Department has appointed Singapore-based consultancy Surbana Jurong Infrastructure to prepare the comprehensive development blueprint.

MMRDA has also earmarked budget support for the coming financial year: out of Rs 4,600 crores allocated for various projects, the MMRDA has earmarked Rs 4,000 crore for the Third Mumbai project. As of July 2026, MMRDA's website still prompts visitors to complete the NTDA–KSC New Town landowner consent form, indicating that consent collection is an ongoing, not yet closed, process.

Reaction and open concerns

The lower developed-land return compared with the adjoining NAINA area has been a point of local pushback. A landowners' representative said, 'If the Third Mumbai is to be built successfully, it is necessary to make the landowners not beneficiaries but partners in development. Trust, fair return and timely implementation are the three pillars of the success of this project.'

Farmer and civil-society groups in the affected talukas have also raised objections to the acquisition approach itself, per reporting on protests following the GR's issuance in March 2026, citing concerns over compensation adequacy and the pace of consultation.