BMC pays ₹1,000 crore to MMRDA for upgrading city infra

Mumbai BMC pays ₹1,000 crore to MMRDA for metro rail corridors. BMC to contribute 25% towards infrastructure projects like metro rail.

MUMBAI: In a first, the Mumbai Metropolitan Region Development Authority (MMRDA) has received ₹1,000 crore from the BMC for upgrading public infrastructure in the city. This is one tranche of the total ₹5,000 crore that the BMC had to pay MMRDA, which is the planning authority for Mumbai and its metropolitan region.

Mumbai, India. Feb 02,2024 - Brihanmumbai Municipal Corporation (BMC) Commissioner Iqbal Chahal along with Additional Municipal Commissioner Ashwini Bhide, V Velrasu and other dignitaries present the BMC budget 2024-2025 at BMC headquarters in Mumbai. Feb 02,2024. (Photo by Raju Shinde/HT Photo)

Sources said that the ₹1,000 crore was a contribution towards the construction of metro rail corridors. According to MMRDA officials, works on various multimodal projects, including the metro rail worth ₹19,800 crore have been completed, of which 25% contribution needs to come from the BMC.

Sources in the government revealed that there was a broad policy framed by the Centre in 2016 for the funding of infrastructure projects like the metro rail undertaken by planning bodies like MMRDA, which has now been implemented. According to this policy, the contribution from the local municipal corporation should be 25%. Another 25% has to come from the kitty of the state government and implementing body like MMRDA and the remaining 50% comes by raising debts through loans.

The logic stated by the authorities is that with the addition to the city’s infrastructure, especially the new metro rail lines, the capital value of the land and property prices have been spiralling, leading to a greater collection of property tax. “The civic body is enjoying the fruits of the city infrastructure’s improvement,” said sources in MMRDA. “Infra has a direct correlation to real estate and property prices, which have been appreciating over the months due to the already operating metro lines or those under construction.”

MMRDA has undertaken 337 km of metro rail lines worth several hundred crores of rupees. It is already operating 20 km of the metro rail route (Lines 7 and 2A between Gundavali-Dahisar-Andheri West), is constructing other metro corridors of Lines 2B (DN Nagar-Mandale), 4 (Wadala-Kasarvadvali), 6 (Swami Samarth Nagar-JVLR-Kanjurmarg) and has proposed a few other metro lines as well. It will also buy out Metro 1 on the Versova-Andheri-Ghatkopar corridor from the Anil Ambani-led Mumbai Metro One Pvt Ltd, for which the state cabinet has cleared ₹4,000 crore.

Transport and urban planners working for government agencies said that enhanced city infrastructure was a big contributor to the ready reckoner prices of real estate. As per the latest figures, the BMC has recovered ₹1,622 crore of property tax of its target of ₹2,978 crore for 2023-24.