In the Maharashtra State Budget 2026-27, Chief Minister Devendra Fadnavis highlighted a significant shift towards urban governance, anticipating that 70% of the state’s population will reside in urban areas by 2047, contributing around 80% of Maharashtra’s GDP. The state plans to expand the Metro network to 1,200 km and the expressway network to over 6,000 km.
A key project in Mumbai is the Metro Line 11, a fully underground corridor from Wadala to Gateway of India, with an estimated cost of Rs 23,487 crore. The government also aims to develop a “Third Mumbai,” a 200 sq km urban zone connected to the Atal Setu, including areas like Kushmanda and Sai-Chirner, alongside projects such as Vadhavan Port and Mumbai 4 in the adjoining region, which is expected to generate over 12 lakh jobs.
The housing sector will see the implementation of a “No New Slum Framework” to revamp 20 lakh slum tenements and construct 10 lakh affordable houses in the Mumbai Metropolitan Region. To manage urban expansion effectively, the Chief Minister introduced governance reforms, including the establishment of empowered regional development authorities, moving towards decentralized municipal control with over 10 regional development authorities modeled on institutions like the Mumbai Metropolitan Region Development Authority.
The budget also emphasizes the creation of more than 20 autonomous industrial and mixed-use townships, with simplified land-use regulations to boost housing and commercial development. The state’s vision of “Viksit Maharashtra” prioritizes technology in city management to enhance the quality of life. Maharashtra plans to implement AI-based “Digital Twins” for major cities after a successful pilot in the energy sector, enabling real-time simulation and management of traffic, water supply, and disaster response.
Moreover, the government intends to integrate Artificial Intelligence and Machine Learning into the Auto DCR application for automated scrutiny of building plans and compliance checks. With a long-term goal of constructing 6 to 7 million affordable housing units by 2047, Maharashtra also envisions high-speed connectivity through a 6,000 km-plus expressway network and high-speed rail corridors to establish the state as a seamless multimodal hub.
