Maharashtra Cabinet Approves Stamp Duty Relief for Dharavi Project & ₹37,000 Cr Virar-Alibag Corridor

The Maharashtra cabinet has given its approval to stamp duty concessions for lease agreements related to the Dharavi Redevelopment Project's Special Purpose Vehicle and other agencies, according to an official statement from the Chief Minister's office. The decision was taken during a cabinet meeting that was chaired by Chief Minister Devendra Fadnavis on Tuesday.

Dharavi Project Gets Financial Relief

An SPV has been established for the integrated redevelopment of Dharavi redevelopment targeting 600 acres, which is recognized as one of Asia's largest slum settlements located in central Mumbai. The massive redevelopment project represents a joint venture between the state government and the Adani group.

The redevelopment-rehabilitation scheme has been declared an 'essential urban and special project' and a policy offering stamp duty concessions or exemptions for such projects has already been finalized, the statement revealed.

In alignment with the existing policy, a proposal was submitted to provide stamp duty concession for sub-lease agreements between the Railway Land Development Authority (RLDA), New Delhi and the Dharavi Redevelopment Project or the Slum Rehabilitation Authority (SRA), Mumbai. The cabinet approved the inclusion of these documents under the stamp duty concession policy with the objective of accelerating the project implementation.

Mumbai Metro Lines Receive Funding Extension

Among other significant decisions, the cabinet extended the deadline for availing loans from financial institutions—Asian Development Bank (ADB) and New Development Bank (NDB)—for Mumbai Metro Lines expansion including 2A (Dahisar East to D.N. Nagar), 2B (D.N. Nagar to Mandale), and Line 7 (Andheri East to Dahisar East).

A total loan amount of USD 1,075.74 million has been approved by ADB and NDB for these metro projects. Out of this substantial amount, USD 549.25 million, equivalent to Rs 4,304.43 crore, has already been utilized for the projects. The Central Government had initially set a deadline of June 30, 2025, for raising the loan.

Metro Operations and Train Procurement

Metro Lines 2A and 7 have already become operational and are serving commuters, while work on Metro Line 2B is progressing steadily. A total of 96 metro trains were to be procured through the ADB loan arrangement, out of which 60 have already been received and are in service.

With the loan deadline now extended to December 31, 2026, the remaining 36 metro trains will also be procured under this financial arrangement, ensuring complete fleet deployment for the Mumbai metro network expansion.

Virar-Alibag Corridor Gets Green Signal

The cabinet also granted approval for the first phase (96.41 km) of the ambitious Virar-Alibag Multimodal Corridor to be developed under the 'Build, Operate and Transfer' model. The total length of the corridor spans 126 km and passes through strategic locations including Vasai, Bhiwandi, Kalyan, Ambernath, Panvel, Uran, Pen and Alibag.

Enhanced Connectivity Benefits

The project is designed to significantly improve connectivity between major highways including the Mumbai-Pune Expressway, JNPT, Mumbai Trans Harbour link and the upcoming Navi Mumbai International Airport. This enhanced connectivity is expected to boost economic activity and real estate development across the region.

A substantial provision of Rs 37,013 crore has been made for the project, which includes Rs 22,250 crore allocated for land acquisition and Rs 14,763 crore towards interest payments, demonstrating the state's commitment to major infrastructure development.

Real Estate and Development Impact

These cabinet decisions are expected to have significant positive implications for Mumbai's real estate sector. The stamp duty relief for the Dharavi project will reduce transaction costs and accelerate one of India's largest urban redevelopment initiatives. Meanwhile, the metro line extensions and the new multimodal corridor will enhance connectivity and potentially drive property value appreciation in the affected regions.

The comprehensive infrastructure development approach demonstrates Maharashtra's focus on creating an integrated transportation network that will support the state's economic growth and urban development objectives in the coming years.

Disclaimer: This news article has been rewritten for informational purposes. While every effort has been made to ensure accuracy, readers are advised to verify information from official sources. The original news source and timing of events should be confirmed independently. This article contains links to related content for additional context and information.