TMC exempted from paying development charges for new projects

The notification issued on Monday said the decision to waive development charges and development cess was based on an order of the finance department dated December 24, 2025 and approval of the state cabinet on March 5, 2026

Mumbai: The state government has waived off development charges for all projects undertaken by the Tata Memorial Centre (TMC) in Maharashtra. A notification to this effect was issued by the urban development department on Monday, saying the premier cancer care institute, though globally renowned, did not have sufficient financial resources to bear various premiums and charges required for building development.

Tata Memorial Centre, Parel (HT Photo)

According to the notification, the hospital will be treated at par with the state government and exempted from paying development charges and development cess levied under the Development Control and Promotion Regulations for all projects across the state, including hospitals and ancillary buildings such as quarters, dharmashalas, and administrative buildings.

Officials said the waiver would be applicable to the hospital’s massive expansion project in Parel, an upcoming 100-bed Ayurveda-based cancer hospital and research centre in Khopoli and the women and children’s wing at its hospital in Kharghar.

The Brihanmumbai Municipal Corporation (BMC) had earlier sought ₹252 crore as premium from TMC for its expansion on the Haffkine Bio Pharma Corporation Limited plot in Parel. The hospital will no longer have to pay this amount, officials clarified.

The notification issued on Monday said the decision to waive development charges and development cess was based on an order of the finance department dated December 24, 2025 and approval of the state cabinet on March 5, 2026.

According to the notification, development charges are levied on development of any land or building in Maharashtra as per section 124(a) of the MRTP Act, 1966. However, under section 124(f) of the said Act, properties owned by the state government, central government, and local authorities are exempt from paying these charges.

The TMC is a non-profit charitable trust functioning under the administrative control of the department of atomic energy, the notification said. The hospital treats around 10,000 cancer patients annually, and economically weaker patients from Mumbai and Maharashtra are provided significant subsidy, and treated almost free of cost. The hospital is a grant-in-aid institution and it does not have sufficient financial resources to bear various premiums and charges required for building development. Considering the globally renowned work of the hospital, and in line with earlier government decisions, the request made by TMC on April 4, 2025 had been considered, the notification said.

Dr Shailesh V Shrikhande, Chief Executive, Tata Cancer Care Foundation and Officer on Special Duty for the TMC’s ₹880 crore expansion project in Parel, spread over 11.5 lakh sq feet, expressed gratitude to the state urban development department for favourably considering their case.

“This is an excellent example of the centre, state and local civic administration working together to help the common man in their dark hour of need,” Shrikhande. “Around 60% patients at the hospital receive highly subsidised treatment, while 40% are treated in the private category. We also run programmes to train and skill cancer care staff and are embarking on doubling the existing care facility.”

TMC director Sudeep Gupta said he was thankful to the state government for granting the exemption.