The scheme envisages providing small-size rental flats at affordable rates.
At a high-level meeting held late yesterday, Chief Minister Prithviraj Chavan agreed to the proposal to increase the size of the rental houses from 160 sq ft to 300 sq ft.
A committee headed by MMRDA commissioner Rahul Asthana had recommended that the size be increased.
"The state has decided to increase the carpet area of the 52,000 tenements, for which clearances have been given.... However, the size of the 37,000 flats, on which (construction) work has begun, will remain 160 sq ft", MMRDA said in a statement.
Chavan also set up a three-member committee consisting of additional chief secretary (urban development) T C Benjamin, principal secretary (housing) Gautam Chatterjee and Asthana to consider if mega-city projects, special townships and rental/ affordable housing scheme could be amalgamated to create more housing stock, the release said.