BMC seeks ₹10,000 crore from Centre to finance city projects

BMC seeks over ₹10,000 crore from the central government for city projects, including flood relief and sewage treatment, amid financial challenges.

MUMBAI: The BMC has sought over ₹10,000 crore from the central government to finance various city projects such as sewage treatment plants, drinking water projects, and to finance flood relief measures for the city, municipal commissioner Ashwini Bhide revealed during an informal media interaction on Tuesday.

BMC seeks ₹10,000 crore from Centre to finance city projects

The flood relief measures include pumping stations at Mahul and over Mogra Nullah and about ₹1,500 to 2,000 crore for reinvigorating the Mithi river. “A part of the finance is being sought from the National Disaster Management Authority with a matching share expected to be allocated by the Maharashtra government,” said Bhide, adding that the funds were as good as sanctioned for three cities, namely Ahmedabad, Mumbai and Delhi.

Coming out strongly in support of the Public Private Partnership (PPP) model that has been sharply criticised by elected representatives, particularly the recent instance of five BMC schools being handed over to private organisations, Bhide stated that it was a policy adopted by the Government of India. “Also, PPP does not mean handing over public places to private entities. It means getting services from the private sector at municipal rates,” she added, claiming that the health sector had benefited from this model, with various private groups offering services at BMC rates.

Describing the BMC’s financials as “strong”, Bhide brushed aside the civic body’s ₹2.5 lakh crore of liabilities as “not such a big issue”. However, she admitted that a lack of fiscal discipline in projects had led to huge escalations, particularly in small and medium projects. Mammoth infrastructure projects like the ₹5,105-crore Gargai Dam project, the ₹14,977-crore Coastal Road, and the Goregaon-Mulund Link Road’s Phase 4 have seen a collective escalation of thousands of crores in a few years.

“While there are certain issues that are beyond us like getting clearances from multiple departments and even from within the same organisation, projects often lack the pre-tendering homework that helps arrive at proper estimates,” she emphasised.

Bhide also justified the BMC’s policy of dipping into its deposits to carry out city projects. The civic body’s reserves have dipped from ₹91,620 crore in 2021 to ₹81,449 crore in the financial year 2026-27. “We cannot keep our deposits lying idle; they need to be utilised judiciously and intelligently,” she said. “They are being used to develop assets for the city, be it roads or water or dams. No other organisation is going to do it for you even though MMRDA does contribute. This is an investment for improving life in the city.”

Responding to a specific query on whether the BMC intended to introduce a toll on the coastal road, Bhide said, “A decision on this will be taken up in consultation with the state government.”