Stamp duty in MMR to fund city’s mass transport projects

Mumbai and MMR’s planning authority received ₹1,245.12 crore from the fiscal year 2023-24 and ₹800 crore in 2022-23. The transport and public policy experts have applauded this step which they feel was long due

Mumbai: The Mumbai Metropolitan Region Development Authority (MMRDA), responsible for infrastructure development across Mumbai Metropolitan Region (MMR), has received over ₹2,045 crore from stamp duty from registration of homes between 2022-2024.

Mumbai, India - July 12, 2023: Heritage and old building in South Bombay were preserved during construction of Hutatma Chowk Underground Metro station. Details on how the engineers built a Metro station below heritage and old buildings on DN road near Fountain in Mumbai, India, on Wednesday, July 12, 2023. (Photo by Satish Bate/ Hindustan Times) (Hindustan Times)

This money is among the few other avenues which the agency will utilise to fund mass transportation projects like the metro rail network which are under construction. Senior MMRDA officials said they have secured vital financial support through various channels like the state government, global financial institutions, urban local bodies, stamp duty etc.

“Under the government of Maharashtra’s guidelines, the MMRDA has received ₹2,045.12 crore so far from the 1% stamp duty collections within the MMR. As of now, ₹3,964.24 crore remains receivable under this provision,” said an official from MMRDA.

Mumbai and MMR’s planning authority received ₹1,245.12 crore from the fiscal year 2023-24 and ₹800 crore in 2022-23. The transport and public policy experts have applauded this step which they feel was long due.

Furthermore, as per a letter from the urban development department, an additional ₹5,904.69 crore is receivable from urban local bodies as 100% additional development charges. BMC has released ₹2,000 crore towards the cost-sharing of metro projects and further support for the region’s infrastructure development.

“The metro project is an ambitious endeavour involving the development of 10 corridors with a total project cost of ₹78,862 crore. The funding for this massive undertaking is a testament to the collaborative efforts of various entities. Overall, MMRDA has successfully secured debt financing of approximately ₹1,16,611 crore for metro and infrastructure projects,” said a senior MMRDA official.

MMRDA is also infusing funds from multilateral development banks, such as Asian Development Bank, New Development Bank, and KfW (Kreditanstalt für Wiederaufbau) that have collectively contributed ₹25,525 crore. Sources said that additionally, the Rural Electrification Corporation has provided a substantial ₹30,593 crore to further bolster the project’s financial foundation. This is mainly for the 8 Metro rail projects of MMRDA, with ₹9,073.13 crore already disbursed against this loan.

MMRDA officials said the state government has also played a crucial role by extending a sub-debt of ₹12,482 crore. To enhance urban transportation in MMR, the REC Ltd. has granted in-principle approval for a term loan of ₹16,000 crore for a tunnel between Gaimukh and Fountain Tunnel, and an elevated road from Fountain to Bhayander. The MMRDA is also seeking a state govt guarantee to issue bonds worth ₹14,000 crore to fund infrastructure and development projects. The first tranche of bonds will be worth ₹1,400 crore.