Kamathipura Redevelopment Moves Ahead With MHADA Agreement

The ambitious Kamathipura Group Redevelopment Project in south-central Mumbai has taken a major step toward implementation. The Maharashtra Housing and Area Development Authority (MHADA) has signed a Construction and Development Agency (C&DA) agreement with Bhagirathi Housing Pvt. Ltd. and Mathi Developers.

The agreement moves the historic 34-acre Kamathipura redevelopment project beyond the planning stage. Preparations are now underway for the next phase, with construction expected to begin around Diwali, subject to the required approvals and qualification process.

MHADA Kamathipura Redevelopment Covers 34 Acres

The Kamathipura cluster redevelopment project covers approximately 34 acres across Lanes 1 to 15. The project includes around 475 cessed buildings and 259 non-cessed buildings.

The C&DA agreement was signed at MHADA headquarters in Bandra. The agreement was signed in the presence of MHADA Vice Chairman and CEO Sanjeev Jaiswal. Milind Shambharkar, Chief Officer of the Mumbai Building Repairs and Reconstruction Board, and Atul Goyal, Director of the developer company, signed the agreement on behalf of the respective organizations.

The cluster approach has been planned to address the area's long-standing housing and infrastructure challenges in a coordinated manner.

More Than 8,000 Residents and Tenants Covered

The redevelopment will have a direct impact on approximately 8,001 residential and commercial tenants and residents. This includes around 6,625 residential tenants and 1,376 non-residential tenants.

Around 800 landowners are also associated with the project.

Many structures in Kamathipura are more than 100 years old. The area also has a dense population, narrow roads and aging infrastructure. Instead of taking up redevelopment building by building, the cluster model aims to create a more organized and comprehensive development across the entire area.

Eligible Residents to Receive 500-Square-Foot Homes

Under the proposed redevelopment plan, eligible residential tenants will receive rehabilitation homes measuring 500 square feet.

The project also includes provisions for the rehabilitation of eligible commercial shopkeepers and other non-residential occupants. Along with rehabilitation, the project is expected to generate approximately 44,000 square meters of additional housing stock for MHADA.

Around 900 additional residential units are expected to be created as part of this process.

Modern Buildings and Better Urban Infrastructure Planned

The redevelopment is designed to transform Kamathipura with modern residential and commercial buildings and improved public infrastructure.

The proposed development includes open spaces, green areas, internal roads, transportation facilities and public amenities. The new buildings are planned with features such as earthquake-resistant construction, environmentally friendly designs, rainwater harvesting systems, sewage and solid waste management facilities, modern fire safety systems and elevators.

These facilities are intended to provide residents with safer and more comfortable living conditions while supporting the area's future development.

Financial Support Planned During Redevelopment

Measures have also been planned to reduce the financial burden on residents and tenants while redevelopment work is underway.

Eligible residents have been approved for two years of advance rent along with a check covering the following year. A lump-sum payment of ₹25,000 has also been provided toward relocation and related expenses.

For commercial tenants, rent support will be based on the size of the shop. Monthly rent of ₹25,000 has been approved for shops measuring up to 200 square feet, ₹30,000 for spaces between 200 and 400 square feet, and ₹35,000 for spaces larger than 400 square feet.

Landowners will receive monthly rent of ₹25,000 per plot during the redevelopment period.

Citizen Participation Remains a Key Part of the Project

MHADA has also focused on keeping local residents and other stakeholders informed about the redevelopment plans.

A public interaction program was organized on September 11, 2026, in collaboration with the Kamathipura Vikas Samiti. The proposed development plan was presented to residents, tenants, landowners and other stakeholders, allowing them to understand the planned changes and project process.

Sanjeev Jaiswal said the signing of the C&DA agreement is an important step in taking the Kamathipura redevelopment project from planning toward implementation. The project is focused on improving safety, living conditions and dignity for residents while also preserving the historical identity of Kamathipura.

With the agreement now signed, attention will shift toward approvals, qualification determination and preparations for construction, bringing the long-planned transformation of Kamathipura closer to the implementation stage.