Mumbai civic body to utilise FDs of ₹20,000 crore for projects: Civic chief

In an exclusive interview with HT, civic chief Ajoy Mehta said, “We have many high-expenditure, long-term projects. Whenever these projects take off and our cash outflows exceed our revenue income, we can use these deposits for the works.”

It is sitting on fixed deposits worth Rs61,510 crore, and the Brihanmumbai Municipal Corporation (BMC) is finally planning to utilise more than Rs20,000 crore of it on high-expenditure projects. In an exclusive interview with HT, civic chief Ajoy Mehta said, “We have many high-expenditure, long-term projects. Whenever these projects take off and our cash outflows exceed our revenue income, we can use these deposits for the works.”

And after presenting a historic budget downsizing estimates on Wednesday, Mehta says he is now focused on better financial monitoring that will result in improved civic services for the city. (PHT)

Even though the BMC has slashed its budget by 32.14% or Rs11,000 crore, it is still more than the budget of some of the smaller states in the country. The BMC is also earning an annual interest of 7.41% on these fixed deposits stashed in 31 different banks.

Despite this, Mumbai’s infrastructure is crumbling — the roads are a mess, drains are clogged in the monsoon, there are water cuts, the city’s waste management is hardly improving and there is haphazard development in every corner of the city.

The BMC has constantly faced flak for failing to provide better services despite being so cash-rich.

And after presenting a historic budget downsizing estimates on Wednesday, Mehta says he is now focused on better financial monitoring that will result in improved civic services for the city.

HT Exclusive: Mumbai civic body to utilise FDs of Rs20,000 crore for projects, civic chief says