Basab wrote a good post on Mumbai's problems and Navi Mumbai's attempt to solve them. I had no idea about the Navi Mumbai story. I now have an excuse to go to Navi Mumbai.
Back to Mumbai's worries--as much as Mumbai has problems, those very problems make it a land of opportunity. Traffic (or commuting) is a big problem. People with disposable incomes commute by hanging to rusty trains. People can pay. They want a solution. Those who can find it will create value and make money. Ditto with affordable housing. And so with other problems.
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Renew Mumbai? Is it practical? Satellite city option is like setting up a special court to deal with a problem. It shows lack of confidence in the system. Time can tell us if it helps solve the problem. Navi Mumbai could, at best, postpone Mumbai's problems. It faces the 'old-truck' problem that a friend told me about. Current owners do not recycle their trucks. They sell it. Old-trucks continue to ply. Problems move - either physically or in time.