BMC Funds INR 1,000 Cr To MMRDA for City Infrastructure Upgrade

In an unprecedented move, the Brihanmumbai Municipal Corporation (BMC) has allocated INR 1,000 crore to the Mumbai Metropolitan Region Development Authority (MMRDA). This funding is part of the INR 5,000 crore that MMRDA is expecting from BMC. 

The INR 1,000 crore grant from BMC is mainly for constructing metro rail routes. MMRDA officials have confirmed the completion of several projects. This includes the metro rail, which is collectively worth INR 19,800 crore. The BMC is expected to contribute 25% of the total cost of these projects.

The central government established a policy in 2016 for financing infrastructure projects like metro rail. The policy, which is still in effect, mandates that the local municipal corporation contribute 25% of the project cost. The state government and implementation bodies like MMRDA are to provide an additional 25%, with the remaining 50% to be financed through loans.

The city's new infrastructure, including roads, and the new metro rail lines, has led to an increase in the value of land and property. This has increased property tax revenue. Reports suggest that the civic body is benefiting from the improvement in the city's infrastructure. Infrastructure plays a big role in increasing the value of real estate. The BMC has already collected INR 1,622 crore of the total INR 2,978 crore property tax target for 2023–24.

MMRDA is responsible for planning the infrastructure of the Mumbai Metropolitan Region. MMRDA has undertaken a metro rail project spanning 337 kilometres. It is constructing metros for Lines 2B, 4, and 6. It also operates a 20-kilometre metro rail route. The state cabinet has also approved INR 4,000 crore for MMRDA to acquire Metro 1 on the Versova-Andheri-Ghatkopar line from Mumbai Metro One Pvt. Ltd.