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MMRDA obtains Rs. 1,500 crore loan from Bank of Maharashtra for slum redevelopment project.

Banking & Finance | Dated: 23 May 2025

In May 2025, the Mumbai Metropolitan Region Development Authority (MMRDA) secured a Rs. 1,500 crore loan from Bank of Maharashtra (BoM), headquartered in Pune, Maharashtra, to fund the redevelopment of slum areas along the Eastern Express Highway in Ghatkopar, Mumbai.

🎯 Key Highlights:

  • - This marks the first phase of the Rs. 8,498 crore Slum Rehabilitation Authority (SRA) project.
  • - Under this initiative, MMRDA will redevelop the Ramabai Ambedkar Nagar and Kamraj Nagar slum colonies in Ghatkopar.
  • - The MMRDA’s first major slum redevelopment initiative aims to rehabilitate around 17,000 slum dwellers by providing free 1 BHK (Bedroom, Hall, Kitchen) homes measuring 300 square feet each. The project will also feature amenities such as gardens, healthcare centers, and educational institutions, along with an additional 5,000 apartments for residents displaced by other ongoing infrastructure developments.

💡 Other Important Facts:

  • (i) Project work will commence once a 75-acre land parcel is transferred from the Slum Rehabilitation Authority (SRA) to MMRDA. Funded by a 15-year loan from Bank of Maharashtra, the redevelopment is expected to be completed within three years.
  • (ii) The total estimated cost of the project is Rs. 8,498 crore, with a multi-source funding strategy: 46% (around Rs. 3,916 crore) will come from institutional loans, 39% will be generated through MMRDA’s internal revenue, and the remaining 15% is anticipated from alternative sources, including government financial support.
  • (iii) The project will include a “free-sale” component, allowing a portion of the apartments to be sold on the open market. Expected to be completed within 48 months, this redevelopment aims to set a precedent and serve as a model for future SRA initiatives across the Mumbai Metropolitan Region.

📚 Test Your Knowledge:

How much loan did MMRDA recently secure from the Bank of Maharashtra for the slum redevelopment project?

Correct Answer: 1,500 crore

🚀 Quick Recap:

About Bank of Maharashtra

  • CEO: Nidhu Saxena
  • Headquarters: Pune