Policy Notification
Maharashtra Issues GR on KSC New Town (Third Mumbai) Land Acquisition & Allocation Policy — 16 March 2026
On 16 March 2026 the Government of Maharashtra issued a Government Resolution approving the Land Acquisition and Land Allocation Policy for the New Town Development Authority (NTDA), giving legal shape to how 323.44 sq km of land across 124 villages will be pooled, compensated and allotted for the KSC New Town (Third Mumbai) project.
| Decision | GR approving Land Acquisition and Land Allocation Policy for NTDA / future MMRDA projects |
|---|---|
| Date of GR | 16 March 2026 (cabinet approval was earlier, 10 February 2026) |
| Issuing authority | Government of Maharashtra, Urban Development Department; implementing body MMRDA as NTDA |
| Notified area | 323.44 sq km across 124 villages in Uran, Panvel and Pen talukas, Raigad district |
| Land-pooling return | 22.5% of developed, infrastructure-ready land to consenting landowners |
| Cash-only threshold | Entitlement below 40 sq metres paid in cash instead of a plot |
| Non-consenting owners | Compulsory acquisition by District Collector; market-rate compensation |
| FDI investment bar | Minimum 100 acres and ₹250 crore per 100 acres within 4 years for priority allotment |
| MMRDA establishment charge | 15% levied on industry allottees as cost recovery |
| Prior step | MMRDA appointed NTDA for the area by notification dated 15 October 2024 |
What was decided
The Government of Maharashtra issued a Government Resolution (GR) approving the Land Acquisition and Land Allocation Policy for the New Town Development Authority and future MMRDA projects. The MMRDA's own project page records this precisely: "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." News coverage places the public issuance a day later, on 17 March 2026, when the resolution was released to the media and industry. the most critical milestone for Mumbai 3.0 occurred on Tuesday, March 17, 2026, when the state government issued a comprehensive Government Resolution regarding land acquisition. The policy itself had first been cleared by the state Cabinet a month earlier. The state cabinet gave its approval on February 10, and Chief Minister Devendra Fadnavis, during his budget speech made on March 6, announced the government's move to develop Mumbai 3.
Scope: area, villages and legal basis
The policy applies to the entire notified KSC New Town area. The KSC NTDA project covers a massive 323.44 square kilometre area across 124 villages in the Uran, Panvel, and Pen talukas. This area was formally constituted earlier: 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, with the designated area named "K. S. C. New Town". It comprises of 323.44 Sq.km. of area. Planning under the March 2026 GR proceeds under the state's regional planning law: Planning proposals shall be prepared as per provisions of Maharashtra Regional and Town Planning Act, 1966.
Operative land-pooling terms for consenting owners
The core mechanism mirrors CIDCO's Navi Mumbai model rather than a straight compulsory-acquisition approach. The New Town is being planned by MMRDA primarily on the framework of CIDCO's Navi Mumbai development model. Under the GR, "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 returned share is not raw land — it comes serviced. These returned plots will be "infrastructure-ready," meaning they come with pre-installed roads, electricity, water, and sewerage.
Compensation options and non-consenting owners
Landowners are not limited to a single route. The policy offers multiple compensation options for landowners consenting to acquisition. These include monetary compensation under the Land Acquisition, Rehabilitation and Resettlement (LARR) Act, or benefits in the form of Floor Space Index (FSI) or Transferable Development Rights (TDR). Alternatively, landowners can opt to receive 22.5% of developed land. Small land parcels below 40 sq metres will be compensated only in cash. For those who decline all these options, the state has kept a fallback compulsory-acquisition route. For landowners unwilling to participate, the state has retained provisions for compulsory acquisition through the district collector under the Maharashtra Regional and Town Planning Act, 1966. Separately, some coverage frames this residual power as sitting under the LARR Act, 2013 as well, with cash compensation set at prevailing market rates. For those not opting for land pooling, the GR provides three other avenues: Direct Cash: Compensation as per the LARR Act, 2013 at prevailing market rates.
Large landowners: joint development via SPV/EOI
The GR carves out a separate track for bulk landholders and aggregators, allowing them to co-develop rather than simply cede or pool their land. The MMRDA is authorised to partner with land aggregators through Expressions of Interest (EOI) to form SPVs for developing specialised 'Growth Centres.' Editorial briefing for this project places the eligibility bar for such joint-development proposals at a minimum of 200 hectares per landowner or aggregator group, positioning this as a route distinct from the standard 22.5% pooling formula — intended for large contiguous holdings rather than individual smallholders.
FDI priority and land-allotment caps
The policy builds in incentives to attract large industrial and foreign investment into the new town. "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." This priority is capped, however: up to 25 percent of the total developed area will be allowed for FDI projects, subject to eligibility criteria and conditions laid down by the MMRDA.
Cost recovery and financing structure
The GR is explicit that the state will not bear the financial burden of acquisition or infrastructure. The state cabinet emphasised that this policy shall not impose any direct or indirect financial liability on the state government. Instead, costs are passed through to allottees over time: 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. A related 'pass-through' allotment mode was also cleared: To encourage industrialisation in undeveloped areas, a 'Pass-Through' policy has been approved. Under this, land will be allotted on an 'as-is-where-is' basis, with all acquisition and infrastructure costs recovered from the allottee in instalments. Industry estimates put the eventual revenue potential from land monetisation at around ₹11,000 crore for MMRDA. MMRDA expects to generate around ₹11,000 crore in revenue through land monetisation for funding capital-intensive infrastructure projects
Exclusions and boundary limits
The land policy does not apply uniformly to every parcel inside the 323.44 sq km notified area. specific exemptions have been made for forest lands, Coastal Regulation Zones (CRZs), and a 250-metre buffer zone around the Pen Municipal Council. Separately, disputes at village boundaries or over forest classification are flagged as a likely source of localised delay. Legal Hurdles: As with any large-scale acquisition, disputes over village boundaries and forest land (which is excluded from the GR) could cause localized delays.
Implementation: committee, consent forms and rollout
To execute the policy, a dedicated oversight body was set up. To oversee the implementation of land acquisition policy, the urban development department has appointed a high-level committee. On the ground, MMRDA opened the practical intake process about six weeks after the GR: by issuing a notification to begin the process, the government asked landowners across 124 villages in Raigad to submit an online form from April 27. This is confirmed independently: The online selection process is scheduled to be opened from April 27 by the Mumbai Metropolitan Region Development Authority (MMRDA). The new framework is to be applied to 124 villages located in Uran, Panvel, and Pen talukas of Raigad district. The MMRDA's official NTDA overview page now carries a live "KSC New Town Consent Form" for landowners to register their choice of compensation route.
Practical effect for landowners and investors
For landowners inside the 124 villages, the GR converts what could have been a purely compulsory acquisition into a menu of choices: cash under LARR/market rates, FSI/TDR benefits, or a 22.5% developed-plot return once infrastructure is built. For the first time in such a project, multiple compensation routes are to be offered instead of a single acquisition formula. Through this model, greater flexibility is intended to be provided to landowners whose properties fall within the notified development zone. For industry and investors, the GR is the mechanism that turns Third Mumbai's political announcement into an executable land pipeline — but actual plot handovers, TPS/pooling execution and infrastructure delivery are still contingent on how many landowners consent, how boundary and forest-land disputes are resolved, and how quickly the high-level committee and NTDA finalise detailed allocation rules. The GR also directs MMRDA to frame detailed land allocation rules for government approval, with an emphasis on maximising revenue and ensuring that the project does not impose any financial burden on the state.
Frequently asked questions
What exactly did the Maharashtra government decide on 16 March 2026?
It issued a Government Resolution approving the Land Acquisition and Land Allocation Policy for the New Town Development Authority (NTDA) and future MMRDA projects, formally confirmed on the MMRDA's own NTDA page as a GR dated 16/03/2026.
Is this the same as creating KSC New Town?
No. KSC New Town and MMRDA's role as NTDA over 323.44 sq km and 124 villages were already notified on 15 October 2024. The March 2026 GR is a separate, later step that sets out how land inside that already-notified area will be acquired, compensated and allocated.
How much land do consenting landowners get back?
Consenting landowners are entitled to 22.5% of developed, infrastructure-ready land in exchange for their raw plots, unless that entitlement works out to less than 40 sq metres, in which case they get cash instead.
What happens if a landowner does not consent?
The state retains the power of compulsory acquisition through the District Collector, with compensation paid at market rates; some accounts frame this fallback under the LARR Act, 2013, others under the MRTP Act, 1966.
Can large landowners develop their land jointly instead of handing it over?
Yes — the GR allows MMRDA to invite Expressions of Interest from land aggregators to form Special Purpose Vehicles (SPVs) for developing specialised 'Growth Centres,' a route intended for large, contiguous holdings rather than individual small plots.
Does the policy favour foreign or large industrial investors?
Yes, within limits. FDI-linked investors get allotment priority if they commit to at least 100 acres and ₹250 crore of investment per 100 acres within four years, but FDI projects overall are capped at up to 25% of the total developed area.
Who pays for the land acquisition and infrastructure?
The state has said the policy will not create a direct or indirect financial liability for the government; instead, costs are recovered in instalments from industry allottees, plus a 15% establishment charge levied by MMRDA.
Sources
- Mumbai 3.0 Guide: KSC New Town Investment, Land GR & Full Map (2026) - PuneNow
- 'Third Mumbai' a step closer to reality. Maharashtra clears land policy for 'next business capital' - ThePrint
- Maha Cabinet approves land acquisition policy for Mumbai 3 project - The Hawk
- New Town Development Authority (NTDA) | MMRDA official page
- Mumbai: The 'Third Mumbai' Project Land Acquisition Began - NoBroker
- Land Compensation Model Introduced for Mumbai 3.0 project - Dailyhunt/Mumbai Live
- Maha govt proposes sops for land acquisition, allotment to push Mumbai 3.0 development - DD News
- Maha Cabinet approves land acquisition policy for Mumbai 3 project - Social News XYZ
- Maharashtra Cabinet issues GR for Mumbai 3.0 land acquisition - Projects Monitor
- Plots at KSC | Underline PIC