New Cities India

Planning & Development

MMRDA Land-Use Plan for KSC New Town Delayed by Village Opposition; Masterplan Timeline Pushed to Q1 2027

The MMRDA's land-use plan for the KSC New Town was expected by the end of August 2026, but the agency is now working on its land-use plan and masterplan with the aim of developing the area around planned transport, utilities and new economic activity. Land acquisition began in March 2026 with landowners offered options including 22.5% developed land, monetary compensation, or compensation through transferable development rights (TDR) or floor space index (FSI), but some villages have opposed the project, describing the acquisition as a "land grab", slowing parts of the land-use survey.

Third Mumbai (KSC New Town) — MMRDA Land-Use Plan for KSC New Town Delayed by Village Opposition; Masterplan Timeline Pushed to Q1 2027
Total Project Area323.44 square kilometres across Raigad district
Villages Included124 villages across Uran, Pen and Panvel talukas
Developable LandAround 104 sq km (remainder comprises villages, forests and green areas)
Land Acquisition TimelineBegan March 2026
Compensation Options22.5% developed land, monetary compensation, or TDR/FSI compensation
Masterplan ConsultantSurbana Jurong Infrastructure Pte Ltd signed August 7, 2026 for 30-week mandate
Revised Masterplan DeliveryAround Q1 2027 (30-week mandate from August 2026)
MMRDA Budget Allocation₹4,000 crore allocated in 2026-27 budget for initial development works

What Happened: Land-Use Plan Delayed by Acquisition Resistance

The MMRDA expected the land-use plan to be ready by the end of August 2026, but opposition from some villages has slowed parts of the land-use survey. Some villages have opposed the project, describing the acquisition as a "land grab". This represents a critical setback in the planning timeline for the 323.44 sq km new town.

Decision and Authority: MMRDA Appointed as New Town Development Authority

The MMRDA has been appointed as the New Town Development Authority (NTDA) for KSC New Town. The Government of Maharashtra appointed MMRDA as New Town Development Authority (NTDA) for 124 villages in Uran, Panvel and Pen Tehsil in Raigad District via notification dated 15th October 2024. The Government of Maharashtra approved the Land Acquisition and land Allocation policy for New Town Development Authority via Government Resolution dated 16/03/2026.

Land Acquisition Framework: Partnership Model Meets Resistance

Land acquisition began in March 2026, with landowners offered options including 22.5% developed land, monetary compensation, or compensation through transferable development rights (TDR) or floor space index (FSI). Following the successful CIDCO model used in Navi Mumbai, the framework offers consenting landowners 22.5% of the developed land back in exchange for their raw plots. These returned plots will be "infrastructure-ready," meaning they come with pre-installed roads, electricity, water, and sewerage. However, villagers from the 124 affected villages have organized under groups such as the MMRDA Virodhi Shetkari Samiti to protest against what they perceive as inadequate compensation and consultation. Farmers and landowners, especially in Panvel, have launched protests demanding better compensation and retention rates. In December 2023, farmers blocked the Mumbai-Goa Highway, demanding the cancellation of the NAINA project and proposing to retain 50% of their land for infrastructure development, opposing the current 60-40 split.

Masterplan Consultant: Surbana Jurong Takes Over

On August 7, 2026, MMRDA signed a formal agreement with Singapore-based infrastructure consultancy Surbana Jurong Infrastructure Pte Ltd., tasked with creating a comprehensive master plan and vision document for the 323.44 square kilometer region within the next 30 weeks. The plan will cover the new town's layout, transport infrastructure and basic utilities. Drone-based mapping and LiDAR surveys are already complete.

Critical Success Factors: Transport and Local Employment

Transport and employment will be critical to the project's success. "Today, while it may have a population, the huge majority is dependent on the local trains to commute to mainland Mumbai for work, because employment has not picked up in Navi Mumbai," said an industry expert. The success of Third Mumbai will depend on more than roads and buildings. Mass transportation, local employment, utilities and sustainable urban planning will need to develop together.

What Comes Next: Revised Timeline and Planning Phase

The finished Surbana Jurong master plan is expected around Q1 2027, after the 30-week mandate from the August 2026 signing. This represents a shift from the original August 2026 land-use plan deadline that was missed due to village opposition and the survey delays. Drone mapping and LiDAR surveys required for planning have already been completed. MMRDA has indicated that this is a long-term project, with meaningful returns unlikely within the next five to ten years.

Development phases

Land Acquisition & Surveys2026Land acquisition began March 2026 across 124 villages;surveys underway but slowed by village oppositionMasterplan PreparationAugust 2026 – Q1 2027Surbana Jurong 30-week mandate; layout, transportinfrastructure and utilities planningInfrastructure Rollout & Development2027–2030+Long-term phased development; meaningful returnsexpected 5+ years post-planning

Frequently asked questions

Why has the land-use plan been delayed?

Some villages have opposed the project, describing the acquisition as a "land grab", and this has slowed parts of the land-use survey.

What are the land acquisition compensation options?

Landowners are offered options including 22.5% developed land, monetary compensation, or compensation through transferable development rights (TDR) or floor space index (FSI).

When will the masterplan be ready?

The finished plan is expected around Q1 2027, following the 30-week mandate from the August 2026 signing with Surbana Jurong.

How large is the developable area?

Although KSC New Town covers more than 323 sq km, large portions comprise villages, forests and green areas, leaving around 104 sq km as developable land.

What infrastructure will support the new town?

The masterplan will cover the new town's layout, transport infrastructure and basic utilities.

Who is the masterplan consultant?

Singapore-based Surbana Jurong Infrastructure Pte Ltd was signed on August 7, 2026 to create the comprehensive master plan and vision document.

Sources

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