The Maharashtra government plans to make a significant policy shift by proposing the inclusion of first-floor chawl residents in the Slum Rehabilitation Authority (SRA) scheme.

At present, only ground-floor structures or those within a height limit of 14 ft. are deemed legal and thus eligible for rehabilitation under the scheme. This restriction has stalled several projects and limited redevelopment opportunities. According to government sources, the Housing Department is preparing to submit a proposal to the state Cabinet recommending this policy change. If approved, the new eligibility criteria will apply solely to chawls and not to slums, maintaining a distinct category within the broader SRA framework.

The slum rehabilitation program, initiated in 1997, enables private developers to rehouse residents in new buildings. In return, the developers will gain rights to construct additional saleable units.

By including first-floor chawl residents irrespective of height limits, the government aims to revive delayed or non-viable projects and improve urban housing outcomes. This move could pave the way for increased redevelopment, particularly in Mumbai and other urban areas, while enhancing living standards for chawl residents previously excluded under existing norms.