NAGPUR: The rising land acquisition costs are becoming a significant challenge for the New Nagpur Project, which is positioned as a key urban expansion initiative by the Maharashtra government. The project originally aimed to acquire approximately 1,710 acres (around 692 hectares) of land. However, the Nagpur Metropolitan Region Development Authority (NMRDA) has indicated that around 500 to 600 acres remain uncertain for acquisition.
According to senior officials at NMRDA, the initial land acquisition cost estimated at ₹3,000 crore has surged past ₹4,000 crore, with expectations of further increases. The Times of India was the first to report this rise of nearly ₹1,000 crore in costs.
Led by Chief Minister Devendra Fadnavis, the government introduced the ₹11,300 crore New Nagpur Project in 2025. A cabinet decision dated September 3, 2025, allocated ₹3,000 crore for land acquisition and ₹3,500 crore for Phase-I infrastructure development. Additionally, the government approved fund-raising via loans from the Housing and Urban Development Corporation Ltd (HUDCO), backed by a state guarantee.
A senior NMRDA official informed the Times of India that the government provided a ₹3,000 crore guarantee to facilitate land acquisition. “We have received ₹928 crore from HUDCO as the first installment following the demand for land acquisition in Godhani village. The formal request for Ladgaon village is still pending,” the official noted.
The official further mentioned that consent has been secured from farmers for nearly 1,586 acres out of the total land identified for acquisition. However, due to the significant rise in costs, it may be necessary to reduce the project area by 500 to 600 acres. We are emulating the MIDC model, acquiring adjacent land parcels along the Samruddhi Expressway systematically, starting from Godhani village,” the official added.
In addition to financial compensation, the project promises to provide a developed 1,500 sq ft plot for every acre of acquired land. Should segments of land be excluded from the acquisition plan, many landowners could miss out on compensation and future development opportunities.
Meanwhile, NMRDA has urged farmers to expedite the consent and acquisition-related procedures to prevent delays in the implementation of the project.
