MMRDA Gets Rs.1,500 Crore Loan from Bank of Maharashtra for Mumbai Slum Redevelopment Project

In a big move to improve housing in Mumbai, the Mumbai Metropolitan Region Development Authority (MMRDA) has secured a loan of ₹1,500 crore from the Bank of Maharashtra. This funding will be used for the redevelopment of Ramabai Ambedkar Nagar and Kamraj Nagar, two of the city’s oldest slum areas located in Ghatkopar.

First Major Funding for ₹8,498 Crore Slum Project

This loan is the first major financial milestone for MMRDA’s ₹8,498 crore Slum Rehabilitation Authority (SRA) project, which is also MMRDA’s first large-scale slum redevelopment initiative. The goal is to transform the densely populated slum areas into planned residential zones with better housing and basic amenities.

The project covers 33.15 hectares of land and will be carried out in four phases. In the first phase, the focus will be on a 17-acre plot where the Slum Rehabilitation Authority (SRA) has already cleared 4,053 slum units. The construction work will begin once the contractors are appointed, and 8,500 residents are expected to receive new homes under this phase.

How the Funding is Structured

MMRDA is following a diversified funding plan to make sure the project stays financially sustainable. Out of the total ₹8,498 crore needed:

• ₹3,916 crore will be raised through institutional loans
• ₹1,500 crore has already been received from Bank of Maharashtra
• Around 39% of the cost will come from MMRDA’s internal revenue sources

This financial plan shows that the MMRDA is serious about maintaining fiscal discipline while ensuring smooth project execution.

Government’s Vision for a Better Mumbai

Chief Minister Devendra Fadnavis called this project a step toward building a future-ready and inclusive Mumbai, where all citizens can live with dignity and security. He emphasized the government’s commitment to solving long-pending redevelopment issues in the city.

Deputy Chief Minister and MMRDA Chairman Eknath Shinde added that the ₹1,500 crore loan approval shows strong support for the state’s vision to uplift lives through better infrastructure and housing.

According to Dr. Sanjay Mukherjee, IAS, Commissioner of MMRDA, this is not just a housing project, but a model for inclusive and sustainable urban development. He said the redevelopment of Ramabai Nagar will serve as an example for future slum redevelopment efforts across the Mumbai Metropolitan Region.

What’s Next?

The SRA is expected to hand over the land by the end of this month to begin the first phase of construction. Meanwhile, the state government is also working on improving connectivity in the region through the Eastern Freeway extension, which will make travel between Mumbai and Thane faster and easier.

This project is part of a broader effort by the Maharashtra government to upgrade housing, boost infrastructure, and improve the lives of thousands of families living in poor conditions.