Mhada Allocates Rs 2,800 Crore for Mumbai's BDD Chawl Redevelopment Project

Monday, Mar 31, 2025 9:25 am ET1min read

The Maharashtra Housing and Area Development Authority (Mhada) has allocated Rs 2,800 crore for the redevelopment of BDD chawls in Mumbai's Worli, Naigaon, and Parel. Mhada is the nodal agency and planning authority for the project, which is valued at Rs 11,744 crore. The project aims to provide eligible tenants with homes with a carpet area of 500 square feet.

The Maharashtra Housing and Area Development Authority (Mhada) has allocated Rs 2,800 crore for the redevelopment of BDD chawls in Mumbai's Worli, Naigaon, and Parel. This significant investment underscores Mhada's commitment to addressing the city's housing shortages and improving living conditions for its residents.

Mhada, acting as the nodal agency and planning authority, is spearheading one of the largest cluster redevelopment projects in Mumbai. The project, valued at Rs 11,744 crore, aims to provide eligible tenants with modern 2-BHK apartments, each with a carpet area of 500 square feet. The project is expected to transform the historic chawls into accessible, modern residences, significantly enhancing the living standards of the 16,000 families involved.

The redevelopment project is part of a broader strategy by Mhada to tackle the city's housing challenges. Mumbai, despite its robust economy, continues to face significant pressure from its growing population and limited geographical boundaries. Vertical growth through redevelopment is seen as a feasible solution to increase the housing stock and address the demand for affordable housing.

The allocation of Rs 2,800 crore is a substantial investment, reflecting the government's commitment to urban renewal and affordable housing. The project is expected to be completed within the next seven years, with Mhada maintaining the redeveloped buildings for 12 years post-completion. Tenants are temporarily relocated to transition camps as part of the rehabilitation process.

The redevelopment of BDD chawls is not an isolated initiative. Mhada has been actively working on various redevelopment projects across Mumbai, including Patra Chawl, Motilal Nagar, GTB Nagar (Punjabi Colony), and Abhudya Nagar, using a cluster model approach. The Samta Nagar redevelopment project in Kandivali is also notable, with 1,128 schemes and 49 self-redevelopment offers issued under 33(5) in the 114 layouts under Mhada.

The central government's commitment to housing for all is reflected in the Pradhan Mantri Awas Yojana (PMAY), which Mhada is implementing as the state-level mission directorate for PMAY (Urban) in Maharashtra. The government has granted Mhada the "planning authority" status for the 114 layouts, expediting the city's redevelopment projects and effectively implementing PMAY.

The BDD Chawl redevelopment project is a significant step towards modernizing Mumbai's urban landscape and providing affordable housing to its residents. The project not only addresses the immediate housing needs but also sets a precedent for future redevelopment initiatives in the city.

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