Uran, a fishing village-turned special economic zone, will acquire a new status soon — that of a city. As a part of its plan to decongest Mumbai and Navi Mumbai, the Maharashtra government proposes to develop a third city in Uran, 50 km away from Mumbai in the Raigad district.

The plan is still in the preliminary stages, but the state government wants to build the city over 100 sq km of land (10,000 hectares) with private sector participation. A beginning has already been made with the state-run Maharashtra Housing & Area Development Authority (MHADA) initiating a blueprint to build housing projects and other infrastructure over a 10 sq-km area (1,000 hectares of land).

Uran, situated east of Mumbai across the Dharamtar Creek, is connected by road and a boat service. A project to link it with Navi Mumbai by rail has already been planned. Uran also houses the Jawaharlal Nehru Port, two private ports, a 672-Mw gas-based power project of MahaGenco and an onshore terminal complex of ONGC.

The proposed city will be one-fourth the size of Mumbai and one-third of Navi Mumbai’s. The Navi Mumbai Municipal Corporation, however, has an area of 162 sq km under its supervision.

Maharashtra’s minister of state for housing Sachin Ahir told Business Standard that the development of a third city in Uran was being considered in view of the constraints faced by Mumbai and Navi Mumbai. MHADA will put in place the necessary infrastructure along with other government agencies over 10 sq km, but the private sector would have to come into the picture to make the 100-sq km city a reality.

Ahir said the government might bring the proposed city in the Mumbai Metropolitan Region so that its state-of-the art transport infrastructure could be further strengthened. He, however, said the success of the project would depend on the development of the Navi Mumbai airport and the Nhava Sheva-Sewree, popularly known as Mumbai Trans Harbour Link.

Tansukh Jain, a leading architect from Uran, said development of transport infrastructure would give a big boost to the real estate sector in Uran and its adjoining areas.

The prevailing land prices in the area are Rs 40-45 lakh per acre.

Sunil Mantri, president, National Real Estate Development Council, termed the proposal an innovative idea. He saw a large scope for affordable housing in the area. “Instead of the traditional auction route, the government should invite joint venture partners,'' he added. Anand Bhingarde, general secretary, Uran Education Society, said the government's move would change the economy of the area and help Uran gain a new identity.