Maharashtra’s First Community-Led Slum Redevelopment Completed

Urban housing in India

In a landmark achievement for urban housing in India, the city of Kolhapur has completed Maharashtra’s first fully community-led slum redevelopment under the Pradhan Mantri Awas Yojana - Urban (PMAY-U). The Bondrenagar project offers a scalable model for in-situ rehabilitation and marks a new chapter in inclusive urban development.

Located near Rankala Lake, the Bondrenagar settlement is now home to 77 households that have been successfully rehabilitated on-site, without relocation, through the Beneficiary-Led Construction (BLC) vertical of PMAY-U. This model integrates secure land tenure, cooperative ownership, and financial inclusion—setting a precedent for slum rehabilitation across India.

"Kolhapur has provided a fertile ground for partnership between the city's administration, NGO and the local community. Through this project, all the partners have mutually learnt about the constraints within which everyone operates and still be able to successfully execute similar projects in the future. This is a shining example of what happens when government schemes, civil society, and community leadership converge," said Smt K. Manjulekshmi, Municipal Commissioner, Kolhapur.

The project was developed by Shelter Associates, a Pune-based NGO, in partnership with the Kolhapur Municipal Corporation and with catalytic support from the A.T.E. Chandra Foundation and DMI Foundation. Additional support came from local MLA Satej Patil. Notably, the community also contributed financially and accessed housing loans from the Bank of India to bridge funding gaps beyond government subsidies.

A Model Worth Replicating

To promote wider adoption, an ideation workshop titled “Facilitating Community-led Housing Under PMAY” was held in Kolhapur. Organised by Shelter Associates and KMC with support from ATECF, the event brought together urban local bodies from five neighbouring cities—Satara, Sangli, Solapur, Ichalkaranji, and Karad—alongside sector experts and community members.

The workshop culminated in the development of a Standard Operating Procedure (SOP) with policy and process recommendations aimed at improving the implementation of the BLC vertical statewide.

“This project shows that slum redevelopment doesn’t have to mean displacement—it can mean dignity, participation, and local leadership. Maharashtra now has a prototype to scale and share,” said Siddharth Pandit, founder of Urban Collective Action Network (U-CAN), who moderated the workshop.

Key Highlights of the Bondrenagar Project:

  • First full slum redevelopment under PMAY-U BLC in Maharashtra
  • In-situ rehabilitation on government land—no relocation
  • Legal land titles secured for all 77 households
  • Formation of a Cooperative Housing Society for collective subsidy access
  • Financing gaps bridged through community contributions and housing loans
  • Community-led design and oversight, including a community hall by architect Shirish Beri

Addressing an Urgent Need

With nearly 40% of India’s urban population living in slum-like conditions, the Bondrenagar initiative presents a bold, practical alternative to traditional slum clearance and resettlement. The project demonstrates how policy, financial tools, and people-centric planning can converge to create dignified, sustainable housing solutions.

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