The Maharastra state government has announced a plan to rid the city of encroachments (that means relatively recent squatter communities) within three yearsThe Times of India reports. That means building 200,000 apartments (2 lakh in Hinglish.) Developer Mukesh Mehta says, with appropriate rules, developers will pay the full price tag. All of this has been talked about before, as this article from MidDay notes. MidDay also asserts that it will take more than 200,000 homes to guarantee all of the city's squatters a place to live.
The key, here, is to work with the squatters. The government tried simple demolition. It didn't work, and the public outcry was immense. If Maharastra is serious, it will work with squatter communities to plan for what they want.