City & Industrial Development Corporation of Maharashtra Limited
New Towns - (Government of Maharashtra Undertaking)


Formation of CIDCO

The City and Industrial Development Corporation of Maharashtra Ltd., was a necessity and Navi Mumbai- the land of comforts and luxuries - is its invention.

In the decade of 1951-61 population of Mumbai rose by 40 per cent and in the corresponding decade it shot up by 43.80 percent. The rapid growth rate of population made possible by the increasing industrial and commercial importance of the city, resulted in a fast deterioration in the quality of life for the majority of people living in the city. Development inputs could not keep pace with the rapidly growing population, industry, trade and commerce. Besides, there were physical limitations to the growth of the city built on long and narrow peninsula, which had very few connections with the mainland.

On realizing the emerging problem, in 1958 the then Government of Bombay appointed a study group under the Chairmanship of S.G. Barve, Secretary of the Public Works Department, to consider the problems of traffic congestion, deficiency of open spaces and play fields, shortage of housing and over-concentration of industry in the metropolitan and suburban areas of the city, and to recommend specific measures to deal with these.

The Barve Group submitted its report in February, 1959. One of its major recommendations was that a rail-cum-road bridge be built across the Thane Creek to connect peninsular Bombay with the mainland. The Group felt that the bridge would accelerate development across the Creek, relieve pressure on the city's railways and roadways, and draw away industrial and residential concentrations eastward to the mainland. The Group hoped that the eastward development would be orderly and would take place in a planned manner.

The Government of Maharashtra accepted the Barve Group recommendation. To examine metropolitan problems in a regional context the government appointed another committee chaired by Prof. D.R. Gadgil, then Director of the Gokhale Institute of Politics and Economics, Pune in March, 1965. The committee was asked to formulate broad principles of regional planning for the metropolitan regions of Bombay. Panvel and Pune and make recommendations for the establishment of Metropolitan Authorities for preparation and execution of such plans.

The board recommended that the new metro-centre or Navi Mumbai as it is now called, be developed to accommodate a population of 21 lacs. The recommendation was accepted by the government of Maharashtra. Accordingly, the City and Industrial Development Corporation of Maharashtra Limited was incorporated on 17th March 1970 under the Indian Companies Act, 1956. By February 1970 the government notified for acquisition of privately owned land covering 86 villages and measure 15,954 ha. within the present limits of Navi Mumbai. Land belonging to further 9 villages,measure 2,870 ha. was additionally designated in August, 1973 for inclusion in the project area. In March, 1971 CIDCO was designated the New Town Development Authority for the project. In October, 1971 CIDCO undertook to prepare and publish a Development Plan as required by the Maharashtra Regional and Town Planning Act (1966).

The corporation started functioning as a company fully owned by the State Government with initial subscribed capital of Rs. 3.95 cr. from the government. It was entrusted with developing necessary social and physical infrastructure and was also entitled to recover all cost of development from sale of land and constructed properties.

The growth of Navi Mumbai was aimed at decongesting Mumbai in terms of both population and commercial activities by shifting industries, market and office activities to the new city making the new city sustainable physically, economically and environmentally. The new city projected to accommodate 2 million people and 7,50,000 jobs in next three decades.The impact of Navi Mumbai on the growth of Mumbai was reflected in 1980s. The 1991 Census recorded a 10 percent decrease in population growth rate for Greater Mumbai, compared to the previous decade. For the island city (a part of Greater Mumbai) growth in the decade of 1980s was negative for the first time. The reason for this phenomenon can partly be attributed to the growth of extended suburbs, and partly to Navi Mumbai which provided an alternative path to growth.