Mumbai civic body’s FD reserves surge at Rs82,410 crore

The Brihanmumbai Municipal Corporation’s (BMC) fixed deposits (FDs) crossed the ₹82,000-crore mark recently after surpassing ₹80,000 crore earlier this year

Updated on: Oct 19, 2021, 23:28:53 IST

By Mehul R Thakkar, Mumbai

Prefer HTon Google

Share via

Copy link

The Brihanmumbai Municipal Corporation’s (BMC) fixed deposits (FDs) crossed the ₹82,000-crore mark recently after surpassing ₹80,000 crore earlier this year. According to BMC’s finance department, FDs worth ₹5,664 crore matured this year, even as BMC invested ₹9,079 crore in new deposits.

The Brihanmumbai Municipal Corporation’s (BMC) fixed deposits (FDs) crossed the Rs82,000-crore mark recently after surpassing Rs80,000 crore earlier this year (HT FILE)

According to the statement to be presented in the standing committee on Wednesday, BMC has ₹82,410 crore in 343 separate FDs at private as well as nationalised banks. The civic body earns around ₹1,800 crore as interest per year on FDs. In the ongoing fiscal’s budget, BMC had taken an internal loan from FDs, attached to long-term infrastructure projects such as infrastructure development fund. For the construction of infrastructure projects such as the coastal road, BMC has linked FDs worth ₹50,952. The amount is expected to be spent in the next few years. Further, FDs of around ₹26,000 crore are part of the employees’ provident fund and pension accounts.

In the statement to be presented on Wednesday, the BMC has stated, “The FDs were at ₹79,002 crore in August. Of this, FDs of ₹5,664 crore matured and BMC made a new FD worth ₹9,079 crore by adding the matured FDs. The fresh amount invested in FDs is ₹3,407 crore in August, taking the total to over ₹82,000 (sic).”

In February, the civic body had presented a budget of ₹39,038.83 crore for the 2021-22 financial year, with no new taxes for Mumbaiites. The budget focusses on upgradation of the city’s infrastructure, healthcare and municipal education systems. The budget was 16.74% more than the previous year’s budget that was pegged at ₹33,441.02 crore. BMC’s capital expenditure – money utilised to upgrade infrastructure and amenities – has increased to ₹18,750.99 crore in 2021, which is ₹7,847.41 crore more than last year’s allocation at ₹10,903.5 crore.

ABOUT THE AUTHOR
Mehul R Thakkar
Mehul R Thakkar is a Mumbai-based journalist who closely tracks the city’s ever-evolving real estate landscape. He believes that Mumbai presents a unique reality that, while Mumbaikars deeply aspire to own a home in the city of dreams, many spend little actual time living in it due to long commutes and demanding work lives. With over 11 years of experience in journalism, I have reported across a wide spectrum of beats, including real estate, housing, infrastructure, aviation, and education. I have also extensively covered the workings of India’s wealthiest civic body, the Brihanmumbai Municipal Corporation (BMC), providing insight into the policy, governance, and urban planning decisions that directly influence Mumbai’s growth. Before joining Hindustan Times, I worked in fast-paced digital and print newsrooms, including Moneycontrol.com and Deccan Chronicle, as well as national dailies such as The Asian Age and DNA. Outside the newsroom, I am an avid weather tracker, a fan of spy thrillers in both books and films, and a keen follower of international affairs.Read More

Catch every big hit, every wicket with Crickit, a one stop destination for Live Scores, Match Stats, Infographics & much more. Explore now!

Stay updated with all the Breaking News and Latest News from Mumbai. Click here for comprehensive coverage of top Cities including Bengaluru, Delhi, Hyderabad, and more across India along with Stay informed on the latest happenings in World News.