Maharashtra Budget 2026: Mumbai metro network expansion, ‘third Mumbai’ plan to drive massive urban growth

06 March,2026 06:21 PM IST |  Mumbai  |  mid-day online correspondent

Presenting the Maharashtra Budget 2026, Chief Minister Devendra Fadnavis said the state is preparing for rapid urbanisation, with cities expected to play a dominant role in economic growth in the coming decades

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The Maharashtra government has unveiled an ambitious urban development roadmap with a strong focus on Mumbai and its metropolitan region, including major infrastructure projects, expansion of the Metro network and large-scale housing initiatives. Presenting the Maharashtra Budget 2026, Chief Minister Devendra Fadnavis said the state is preparing for rapid urbanisation, with cities expected to play a dominant role in economic growth in the coming decades.

According to the chief minister, 70 per cent of Maharashtra's population is projected to live in urban areas by 2047, contributing nearly 80 per cent of the state's Gross Domestic Product (GDP). To manage this shift, the government has proposed a range of infrastructure and governance reforms, with Mumbai positioned at the centre of this transformation.

Massive Metro expansion planned across Mumbai region

One of the key announcements in the budget is the government's long-term goal of expanding the Metro rail network to 1,200 kilometres across Maharashtra, significantly strengthening urban mobility.

In Mumbai, a major highlight is the Metro Line 11 project, which will run from Wadala to Gateway of India. The proposed corridor will be a fully underground Metro line and is estimated to cost around ₹23,487 crore.

The project is expected to improve connectivity between South Mumbai and other parts of the city while reducing road congestion and travel time.

Alongside Metro expansion, the government also aims to expand the expressway network in the state to more than 6,000 kilometres, improving regional connectivity and facilitating faster movement between major cities.

‘Third Mumbai' development plan announced

Another significant proposal is the development of a "Third Mumbai" urban zone covering around 200 square kilometres. The proposed development will be located near the Atal Setu (Mumbai Trans Harbour Link) and will include areas such as Kushmanda and Sai-Chirner.

The government plans to integrate this new urban zone with large infrastructure projects in the region, including the Vadhavan Port project and a new urban development corridor referred to as "Mumbai 4".

Officials expect the Vadhavan Port project to generate more than 12 lakh jobs, potentially creating a major economic hub near the Mumbai Metropolitan Region.

New housing push and slum redevelopment

In the housing sector, the government has proposed a "No New Slum Framework" aimed at tackling the long-standing housing shortage in the Mumbai Metropolitan Region (MMR).

Under this initiative, the state plans to redevelop around 20 lakh slum tenements while also constructing 10 lakh affordable housing units in the region.

The broader long-term goal is to build 6 to 7 million affordable homes across Maharashtra by 2047, with a major share expected to be in the Mumbai metropolitan area.

The government also plans to promote cluster redevelopment of ageing housing layouts, which is expected to improve urban infrastructure and living conditions in densely populated neighbourhoods.

Regional authorities to manage urban expansion

To better manage rapid urban growth, the chief minister announced plans to establish more than 10 empowered regional development authorities across the state.

These authorities will be modelled on institutions such as the Mumbai Metropolitan Region Development Authority (MMRDA) but will be given greater administrative and financial autonomy.

In addition to Mumbai, new development authorities are expected to be created for regions such as Nashik, Chhatrapati Sambhajinagar, and the Solapur-Latur belt. These regions will be developed as "City Economic Regions" aimed at driving investment and economic activity.

Technology-driven urban management planned

The budget also emphasises the use of technology in city management. The state government plans to implement Artificial Intelligence-based "Digital Twin" systems for major cities, including Mumbai.

This technology will allow authorities to simulate and manage urban systems in real time, helping improve traffic management, water supply systems and disaster response mechanisms.

Additionally, the government plans to integrate Artificial Intelligence and Machine Learning into the AutoDCR (Development Control Regulations) system, enabling faster and automated scrutiny of building plans and compliance processes.

Through these initiatives, the Maharashtra government aims to transform Mumbai and other major cities into globally competitive urban centres, supported by modern infrastructure, technology-driven governance and large-scale housing development.

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Budget Maharashtra Budget maharashtra devendra fadnavis mumbai mumbai news
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