As Maharashtra sets its sights on becoming a $1 trillion economy by 2030, the re-elected government’s focus on regional planning and urban development is a much-needed step toward sustainable growth. With metro cities like Mumbai and Pune buckling under the strain of rising population densities, insufficient infrastructure, and escalating costs of living, the need for new towns is more urgent than ever. These planned settlements offer a promising solution to the twin challenges of economic growth and quality of life.
The Need for New Towns: A Demographic and Economic Perspective
Maharashtra is home to 123 million people, accounting for nearly 10% of India’s population. Over 52% of this population resides in urban areas, far higher than the national average of 31%. Cities like Mumbai, Pune, and Nagpur, which drive much of the state’s economy, are struggling with population densities that touch unsustainable levels:
- Mumbai: Over 20,000 people per square kilometer, one of the highest globally.
- Pune: 6,600 people per square kilometer, straining its infrastructure.
In contrast, new towns can offer lower densities and planned spaces that provide residents with a higher quality of life.
Economic Competition
Maharashtra is facing stiff competition from states like Gujarat, Karnataka, and Tamil Nadu, which have aggressively marketed themselves as investment destinations. Cities like Bengaluru, Hyderabad, and Ahmedabad are emerging as preferred hubs for industries, IT, and logistics, pulling away businesses and talent from Maharashtra.
- Bengaluru: Added 1.5 million IT jobs in the last decade, compared to Pune’s 800,000.
- Ahmedabad: Benefited from faster approvals and investor-friendly policies, securing ₹3,500 crore in industrial investments in 2023 alone.
To stay competitive, Maharashtra must offer an alternative that is not only economically viable but also socially appealing. New towns can become these economic magnets, reducing the over-dependence on traditional hubs.
Lessons from Navi Mumbai: A Blueprint for Success
Navi Mumbai, developed by CIDCO, is a shining example of how planned urbanization can decongest an overburdened metropolis while offering a thriving alternative.
- Over the past decade, Navi Mumbai’s population has grown to 2.2 million, while its planned infrastructure ensures a balanced urban life.
- The city hosts over 2,500 small and medium enterprises (SMEs), along with thriving educational and healthcare facilities.
- With the Navi Mumbai International Airport and the Mumbai Trans-Harbour Link underway, its connectivity to Mumbai is poised to improve further.
This slow but firm success underscores the importance of planned, holistic development, which can be replicated across Maharashtra’s lesser-developed regions.
Decongesting Mega Cities: A Breath of Fresh Air
Mumbai’s infrastructure is buckling under the weight of its population, currently estimated at 21 million. Walkability—a basic aspect of urban living—has been severely compromised:
- Sidewalk Encroachments: A study by the Urban Design Research Institute (UDRI) revealed that 60% of sidewalks in Mumbai are encroached upon, forcing pedestrians onto roads and increasing accident risks.
- Average Commute Times: The average Mumbaikar spends 135 minutes daily commuting, one of the longest globally.
Planned new towns, with a focus on pedestrian-friendly designs, green spaces, and mixed-use development, can promote walkability and create healthier living environments.
Population Density Comparison
- Mumbai: 20,000/sq km.
- Navi Mumbai: 4,000/sq km.
- Global Standards: Ideal urban densities are between 6,000-10,000 people per sq km.
By redistributing population through new towns, Maharashtra can breathe life into its existing urban centers, making them more livable and efficient.
A Vision for New Towns in Maharashtra
The Maharashtra Regional and Town Planning (MRTP) Act provides a strong legal framework to develop new towns that integrate economic, social, and environmental considerations. The following aspects are crucial:
1. Economic Independence
Each new town should have an economic spine tailored to its region. For example:
Aurangabad: Build on its industrial base as part of the Delhi-Mumbai Industrial Corridor (DMIC).
Konkan Region: Leverage its coastal location for logistics and tourism.
Vidarbha: Develop Nagpur as a logistics hub for central India, integrating nearby towns.
2. Social Infrastructure
The state government’s focus on creating robust healthcare, education, and recreational facilities will be critical. Studies show that access to quality social infrastructure increases property values by 15-20% and attracts businesses and residents alike.
3. Affordable Housing
Mandating 40-50% affordable housing ensures inclusivity, while models like land value capture can finance infrastructure without overburdening the exchequer. It is the high time now for the state government of Maharashtra to push for a separate affordable housing index for Metro cities where in all homes below 60 sq m are declared as affordable homes with a price cap of Rs. 90L.
Funding the Dream
The success of new towns depends on their financial viability. Maharashtra can draw from:
- Land Value Capture: Estimated to generate ₹10,000 crore annually, as agricultural land is converted for urban use.
- Public-Private Partnerships (PPP): Joint acquisition models involving local authorities, developers, and investors can reduce financial risks.
- Central Government Schemes: Programs like Smart Cities Mission and AMRUT can supplement state funding.
Competing with India’s Urban Giants
While Bengaluru, Hyderabad, and Ahmedabad surge ahead, Maharashtra must position its new towns as centers of innovation and opportunity.
- IT Sector: Maharashtra added only 800,000 IT jobs in the last decade, compared to Bengaluru’s 1.5 million. New towns with IT hubs can narrow this gap.
- Manufacturing: Gujarat’s pro-business policies have attracted ₹8,000 crore in new investments, outpacing Maharashtra.
A healthy competition through well-planned towns will allow Maharashtra to reclaim its position as India’s economic leader.
The Way Forward: Collaboration and Ambition
Creating new towns requires collaboration between the state and central governments, local authorities, and the private sector. The new government in Maharashtra must lead with:
- Clear Policy Directions: Aligning new town planning with the state’s economic and social goals.
- Capacity Building: Addressing the shortage of planners and engineers by establishing urban planning institutes.
- Legislative Support: Strengthening the MRTP Act to streamline land acquisition and infrastructure development.
Conclusion: A New Maharashtra for a New Era
Maharashtra’s aspiration to become a $1 trillion economy is both ambitious and achievable. However, this vision hinges on the state’s ability to decentralize growth, reduce urban congestion, and create equitable opportunities for all. New towns are not merely a solution to overcrowding; they are a symbol of the state’s resilience and foresight.
By promoting regional planning, investing in social and physical infrastructure, and fostering healthy competition with other states, Maharashtra can ensure a prosperous future for its people. The success of Navi Mumbai offers a blueprint—now it’s time to scale this success across the state.
New towns are not just a necessity; they are the foundation for Maharashtra’s next chapter.