In a major step towards urban renewal and improved housing for low-income residents, the Maharashtra Housing and Area Development Authority (MHADA) has floated a tender to appoint an Engineering, Procurement and Construction (EPC) contractor for the long-awaited redevelopment of the PMGP Colony in Poonam Nagar, Jogeshwari (East).

The dilapidated colony, originally built between 1990 and 1992 under the Prime Minister’s Grant Project (PMGP), comprises 17 buildings of ground plus four storeys. It houses a total of 984 tenements — 942 residential and 42 non-residential — spread across approximately 27,625 square metres.

According to structural audit reports, the colony has severely deteriorated over the years. Under the new redevelopment plan, all eligible residents will be rehabilitated into modern homes with a carpet area of 450 sq. ft., a significant upgrade from the existing 180 sq. ft. units. The project is to be executed by MHADA’s Mumbai Board under the leadership of MHADA Vice President and CEO Sanjeev Jaiswal, with a completion timeline of approximately three and a half years.

A Troubled Past Redeemed

The redevelopment of the PMGP Colony has seen multiple delays. In 2010, the housing societies appointed a private developer, but due to years of inaction and no visible progress, the project remained stalled. Mounting frustration led residents to appeal to the government to step in. Acting on these requests, the government cancelled the developer’s appointment in December 2020 and handed over the responsibility to MHADA.

Subsequently, a tripartite agreement with the previous developer was officially terminated on 20 June 2022. Though MHADA had proposed a revised plan in November 2023 to carry out cluster redevelopment through a private Construction and Development Agency (C&DA), the government later decided to proceed with implementation under Development Control Regulation 33(5).

Path to Execution

Initial tenders floated on 2 July 2024 and 6 September 2024 failed to attract bids. As a result, MHADA proposed taking direct responsibility for the redevelopment through its own EPC contractor. Following state government approval on 28 May 2025, the tender notice was officially published on 16 June 2025. Interested parties have until 7 July 2025 to submit their bids.

The redevelopment of the PMGP Colony at Poonam Nagar is being closely watched as a model for how stalled and ageing housing projects across Mumbai could be rejuvenated under public agency leadership.

Also Read: Kamathipura Redevelopment Again On The Block.

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