Chennai Metropolitan Development Authority (CMDA) is in the process of drafting its Third Master Plan (TMP), targeting compact, vertical urban growth and infrastructure upgrades across the 1,189 sq. km of the Chennai Metropolitan Area.

The plan proposes increasing the Floor Space Index (FSI) in key zones such as metro corridors, commercial hubs, entertainment districts, and industrial belts. This move is intended to encourage vertical development, offering more housing options and allowing residents to live closer to workplaces and transport hubs. The plan also emphasises upgrading underground amenities such as sewage systems, water supply, and roads to handle the increased density.

An important focus is in-situ redevelopment of slum areas, where nearly 40 percent of Chennai's population resides. "Relocating them far away breaks their social fabric and denies them dignity," a CMDA official added. Urban planner K P Subramanian has recommended simplifying zoning to reduce delays and improve development flexibility while maintaining focus on decentralisation and coordinated urban planning.