Mumbai is facing mounting pressure from limited land availability, rising housing demand and traffic congestion. To address these challenges, the Maharashtra government has proposed a new mega city beyond Navi Mumbai, to be developed as ‘KSC New Town’, also referred to as ‘Mumbai 3.0’.

The planned city will cover 323.44 sq km and include 124 villages across Uran, Panvel and Pen talukas in Raigad district. The Mumbai Metropolitan Region Development Authority (MMRDA) has been appointed as the development authority for the project.

Officials say the location is intended to benefit from proximity to key regional infrastructure that links Mumbai, Navi Mumbai and Raigad. Connectivity is expected to be strengthened through projects such as the Atal Bridge, the Navi Mumbai International Airport, the Panvel–Karjat rail line, the Virar–Alibaug multi-modal corridor, and the Mumbai–Pune Expressway.

For the 2026–27 financial year, the state budget has allocated Rs 4,000 crore for the initiative. Land acquisition has been initiated across the identified villages, and the MMRDA has outlined compensation and priority-related provisions for landowners.

The master plan includes residential and industrial zones along with IT hubs, data centres, financial services, healthcare, education and freight logistics centres. The project also proposes emphasis on green zones, forests, mixed-use housing and multi-modal transport integration.