Third Mumbai (Mumbai 3.0) Explained What It Means for Navi Mumbai & Raigad Landowners

In the shadow of Mumbai's ever-expanding urban footprint, a new megalopolis is taking shape. Officially named Karnala-Sai-Chirner New Town but commonly known as "Third Mumbai," this 324-square-kilometer development represents Maharashtra's most ambitious urban planning initiative since Navi Mumbai emerged in the 1980s.

The Birth of Third Mumbai

The genesis of Third Mumbai (Mumbai 3.0) traces back to 2013 when Maharashtra authorities sought to prevent unplanned development around the upcoming Navi Mumbai International Airport. This resulted in the creation of the Navi Mumbai Airport Influence Notified Area (NAINA), which has evolved into what we now call Third Mumbai.

The project gained significant momentum in early 2024 when the Maharashtra government's Urban Development Department invited suggestions and objections from the public, setting an April 3, 2024 deadline. The development is envisioned as an environment-friendly township with smart city features, incorporating residential and commercial complexes with a focus on economic growth and job creation.

The Scope: 124 Villages and Counting

The operational scope of Third Mumbai encompasses 323.44 square kilometers, incorporating 124 villages from several administrative regions: 80 villages from NAINA, 33 from Khopta New Town Notified Area, two from the Mumbai Metropolitan Regional Plan, and nine from the Raigad Regional Plan. This extensive transformation will impact thousands of landowners, primarily in the Raigad district.

Infrastructure Driving Development

Two major infrastructure projects serve as the backbone for Mumbai 3.0's development:

• Mumbai Trans Harbour Link (MTHL): Also known as Atal Setu, has dramatically improved connectivity between Mumbai and the surrounding regions, reducing travel time from Navi Mumbai to South Mumbai from two hours to just 20 minutes. This enhanced connectivity has made the areas around Third Mumbai significantly more accessible.
• Navi Mumbai International Airport: The airport project continues to progress, further increasing the strategic importance of the Third Mumbai region. This connectivity is anticipated to drive economic growth, particularly in real estate, with micro-markets like Panvel and Ulwe seeing increased demand due to their strategic location.

The 40-60 Land Acquisition Model

Perhaps the most controversial aspect of Third Mumbai is its land acquisition approach. The town planning schemes (TPS) under NAINA involve a land pooling model where landowners contribute 60% of their original land for development, receiving at least 40% back as final plots. These final plots are well-laid, regular-shaped, and developable, often anchored to their original locations where possible.

For example, in May 2023, CIDCO allotted 92,000 square meters of land to landowners from six villages under TPS-2, demonstrating this model in action. The final plots come equipped with infrastructure like roads and drainage systems.

FSI Benefits for Landowners

Landowners also benefit from FSI incentives, with a base FSI of 1.00 outside 200 meters from village gaothans, and an additional 0.25 FSI within 200 meters to compensate for area loss due to reconstitution. This allows for increased construction potential, enhancing the value of their plots.

Compensation can be in the form of additional FSI instead of monetary terms, with Transfer of Development Rights (TDR) facilities for non-utilized FSI, providing flexibility for future development.

Legal Developments on Compensation

The judicial system has weighed in on the compensation issues. The Bombay High Court has recently addressed land acquisition cases in the region, emphasizing that compensation alone is insufficient for affected landowners. In March 2025, while dismissing petitions challenging land acquisition in Navi Mumbai, the court stressed the need for proper restitution and rehabilitation beyond mere monetary payments.

In this ruling, the court granted farmers 20 percent of developed land along with financial compensation, although it denied rehabilitation in the form of land plots. The High Court emphasized that "the focus must shift from a mere payment of compensation to restitution and rehabilitation in its broad sense".

This position was further reinforced by a Supreme Court ruling in May 2025 that stated land acquisition compensation must be guided by principles of equality, equity, and justice. The court stressed that similar lands should receive equal compensation, reflecting the dynamic nature of real estate markets and factoring in escalation of land prices over time.

Community Resistance and Concerns

Despite government assurances, the project has faced significant opposition. Villagers from the 124 affected villages have organized under groups such as the MMRDA Virodhi Shetkari Samiti to protest against what they perceive as inadequate compensation and consultation.

Farmers and landowners, especially in Panvel, have launched protests demanding better compensation and retention rates. For instance, in December 2023, farmers blocked the Mumbai-Goa Highway, demanding the cancellation of the NAINA project and proposing to retain 50% of their land for infrastructure development, opposing the current 60-40 split. They argue that the 40% return, with 2.5 FSI, does not adequately compensate for the loss of agricultural land and potential livelihood impacts.

A particular point of contention emerged in December 2024 when villagers expressed fury over the absence of public hearings regarding the approximately 25,000 objections filed by gram panchayats, gram sabhas, and individual villagers.

Investment and Property Value Outlook

For property investors and existing landowners, Third Mumbai represents a potentially lucrative opportunity. Real estate in areas connected to the MTHL is predicted to experience substantial appreciation, with properties in these regions currently priced at approximately 30-40% of comparable properties in Central and South Mumbai. For landowners in Navi Mumbai and Raigad, the Third Mumbai project presents significant economic opportunities. Research indicates that the development will likely increase land values due to improved infrastructure and connectivity.

Recent Developments

As of May 2025, the NAINA project is progressing, with significant infrastructure investments. In August 2024, CIDCO floated tenders worth Rs 3,300 crore for TPS 8-12, following earlier tenders worth Rs 3,114 crore for TPS 2-7 in March 2024, indicating a push to accelerate development.

However, challenges remain, with reports from November 2024 noting new hurdles as villagers demand compensation, indicating ongoing negotiations and potential adjustments to the project framework.

Conclusion

The development of Third Mumbai represents a watershed moment for urban planning in the Mumbai Metropolitan Region. For landowners in the 124 affected villages, the project offers both challenges and opportunities—the surrender of agricultural land balanced against potential property value appreciation and modernized infrastructure.

As Maharashtra moves forward with this ambitious urban development initiative, the balance between progress and fair compensation for landowners will remain a critical issue. The success of Mumbai 3.0 will ultimately depend on how effectively authorities navigate these competing interests while creating a sustainable, livable urban center for future generations.

Frequently Asked Questions (FAQs)

1. What exactly is Third Mumbai?
Third Mumbai (Karnala-Sai-Chirner New Town) is a 324 sq km planned urban development project in Maharashtra designed to create a third satellite city after Mumbai and Navi Mumbai.

2. How many villages are affected by the Third Mumbai project?
The project affects 124 villages spread across NAINA (80), Khopta New Town (33), Mumbai Metropolitan Regional Plan (2), and Raigad Regional Plan (9).

3. What is the land contribution model for affected landowners?
Landowners contribute 60% of their land and receive 40% back as developed plots with infrastructure, along with FSI benefits.

4. What major infrastructure projects are driving Third Mumbai's development?
The Mumbai Trans Harbour Link (Atal Setu) and the upcoming Navi Mumbai International Airport are the two major infrastructure catalysts.

5. What FSI benefits do landowners receive under the town planning scheme?
Landowners receive a base FSI of 1.00, with an additional 0.25 FSI for plots within 200 meters of village gaothans as compensation for area loss.

6. What are the main concerns expressed by affected village communities?
Villagers are primarily concerned about inadequate compensation, lack of public consultation, and unfair land contribution ratios (demanding 50-50 instead of 60-40).

7. How has the legal system weighed in on the compensation issue?
Recent Bombay High Court and Supreme Court rulings emphasize that fair compensation must extend beyond monetary aspects to include restitution and rehabilitation.

8. What is the current status of the Third Mumbai project as of May 2025?
CIDCO has floated tenders worth Rs 6,414 crore for town planning schemes, though negotiations with villagers over compensation continue to pose challenges.