Mumbai : In a move set to transform the pace of Mumbai’s infrastructure development, the Mumbai Metropolitan Region Development Authority (MMRDA) has introduced a pioneering Financial Compensation Policy for Project-Affected Persons (PAPs). Approved during its 159th authority meeting, this shift marks a departure from the traditional tenement-based resettlement model, aiming to fast-track major urban projects by offering direct monetary compensation.
Under the new policy, eligible residential PAPs will receive a minimum of ₹25 lakh, with compensation amounts determined based on Ready Reckoner (RR) rates. The policy covers both residential and commercial structures, aligning with the BMC’s 2023 guidelines for resettlement and rehabilitation.
This forward-looking initiative is already proving impactful, having benefitted over 6,300 PAPs across key infrastructure ventures such as the Mumbai Metro, Mumbai Trans Harbour Link (MTHL), and the Sewri-Worli Elevated Corridor.
Officials say the compensation model will ease resistance to land acquisition, ensure smoother and faster resettlement, and significantly reduce project delays. It also reflects MMRDA’s intent to blend development with dignity, offering PAPs greater flexibility and financial autonomy.
As Mumbai continues to reimagine its urban landscape, this policy could well become a blueprint for inclusive infrastructure planning in other metropolitan regions.
