State plans to grant ‘vital project’ tag to Kamathipura redevelopment project

On June 12, 2025, Mhada, acting as the special planning authority, floated tenders for the project. Contracts were awarded on November 14, 2025 to Bhagirathi Housing Pvt Ltd and Mathi Developers Pvt Ltd as the construction and development agency, he said

MUMBAI: The Maharashtra government plans to grant ‘vital project’ status to the Kamathipura redevelopment, one of the city’s largest cluster schemes spread across 34 acres in south Mumbai. Minister of state for housing Pankaj Bhoyar announced the move in the state assembly on Wednesday, assuring that the work order will be issued within a week.

Mumbai, India - July 21, 2015: Redevelopment of Kamathipura area in Mumbai, India, on Tuesday, July 21, 2015. (Photo by Anshuman Poyrekar/ Hindustan Times) (Hindustan Times)

Admitting delays, Bhoyar said the project had been held up for over four months due to administrative lapses. He was responding to concerns raised by Congress MLA Amin Patel, who sought clarity on timelines and implementation. Amin Patel said that the redevelopment process need to speed up as the people are compelled to live in dangerous conditions as most of the buildings are in dilapidated conditions.

“It is true there has been a delay in issuing the work order due to administrative issues. However, it will be issued this week and on-ground work will begin within two months,” Bhoyar told the House.

On June 12, 2025, Mhada, acting as the special planning authority, floated tenders for the project. Contracts were awarded on November 14, 2025 to Bhagirathi Housing Pvt Ltd and Mathi Developers Pvt Ltd as the construction and development agency, he said.

Calling it a crucial project for south Mumbai, Bhoyar said the decision to grant ‘vital project’ status will be cleared by housing minister Eknath Shinde and chief minister Devendra Fadnavis. The designation is expected to fast-track approvals, ease procedural hurdles and enable potential financial incentives.

Kamathipura, divided into 15 lanes, comprises 943 cessed buildings, 349 non-cessed structures, 14 religious sites and two BMC-run schools. The redevelopment is expected to benefit around 8,000 families, many of whom live in dilapidated conditions.

Located in the heart of the island city, the project is also seen as a major boost to the real estate landscape of south Mumbai, following large-scale initiatives such as the 16.5-acre Bhendi Bazaar redevelopment under the Saifee Burhani Upliftment Trust.