MMRDA cuts spending on infrastructure projects by ₹6,800 crore

MMRDA’s total budget size for FY 2025-26 is ₹40,187.41 crore, which includes provisions for four new metro lines and multiple infrastructure projects

Mumbai: The Mumbai Metropolitan Region Development Authority (MMRDA) has cut its estimated spending on public transportation and infrastructure projects by ₹6,804.2 crore in FY 2025-26 compared with the previous financial year, according to its latest budget that was approved on Friday by deputy chief minister Eknath Shinde, who also holds the urban development portfolio.

MMRDA cuts spending on infrastructure projects by ₹6,800 crore

MMRDA’s total budget size for FY 2025-26 is ₹40,187.41 crore, which includes provisions for four new metro lines and multiple infrastructure projects. However, this represents a drop compared with the government agency’s ₹46,921.29 crore budget for FY 2024-25, which included an estimated spending on infrastructure projects worth ₹41,955.34 crore. In the latest budget, only ₹35,151.14 crore has been earmarked for infrastructure.

“In the latest budget, 87% of funds have been allocated for infrastructure development, metro rail, coastal road and new projects,” said Shinde, who also is the MMRDA chairperson. “This year, 20 km of metro rail will be ready and 50 km next year. In 2027, all the ongoing metro rail projects will be completed.”

The four metro corridors that received an allocation in the budget are Metro 14 (Kanjurmarg-Badlapur), Metro 13 (Mira Road-Virar), Metro 10 (Gaimukh-Mira Road) and the Metro 5 extension from Durgadi in Kalyan to Ulhasnagar.

The infrastructure projects that have been accommodated in the 2025-26 budget are phase 1 of a tunnel between Gaimukh and the Hotel Fountain junction at Mira Road, an elevated road from the Hotel Fountain Junction to Bhayandar, the third phase of a tunnel from Airoli to Katak Naka, a road from the Netaji Subhash Chandra Bose Ground to Uttan in Mira-Bhayandar, a new road from Ghodbunder to Jaisal Park up to Ghodbunder Fort, a 30-metre wide road from Sai Palace Hotel to Thakur Mall in Mira-Bhayandar, a road and rail overbridge to connect Mira Road East and Mira Road West, 23 roads in Shiv Sena minister Pratap Sarnaik’s Ovala-Majiwada constituency that covers Mira Road and Thane, and multiple roads and bridges in Vasai-Virar, Alibaug and Kulgaon-Badlapur.

Compared with the previous financial year, MMRDA has reduced its budget deficit from ₹7,468.25 crore to ₹5,036.27 crore, with the agency expecting to earn ₹36,938.69 crore in revenue. Some of the expected revenue sources are sub-debts from the state government ( ₹2,082 crore), borrowings ( ₹22,327.35 crore), leasing of land ( ₹7,344 crore), government grants and sale of transferable development rights ( ₹1,024 crore), urban transport fund ( ₹3,000 crore), project operations ( ₹305.27 crore) and other receipts ( ₹856.07 crore).

“The deficit will be bridged through borrowing to ensure projects do not get hampered,” MMRDA commissioner Sanjay Mukherjee told Hindustan Times on Friday.