The constant request for funds for mega projects could potentially destroy BMC’s financial stability, claim politicians
BMC has already allocated R1,000 crore to MMRDA for the Metro project. File pic
The Brihanmumbai Municipal Corporation (BMC) may need to withdraw an additional Rs 3,000 crore from its fixed deposit if the Mumbai Metropolitan Regional Development Authority (MMRDA), requests a portion of the Metro project funding in April or May. In accordance with the state government's urban development directive, BMC has already allocated Rs 1,000 crore to MMRDA for the city's Metro project. The urban development department has instructed BMC to provide a total of R4,960 crores to MMRDA for the Metro railway project, with disbursements to be made in two installments.
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"We have already paid Rs 1,000 crore. If MMRDA asks us to pay a second installment, we need to withdraw funds from the fixed deposit,' said an official.
As per the data, BMC had fixed deposits amounting to Rs 91,690 crore as of March 31, 2022. Over 20 months, these deposits decreased by Rs 7,075 crore. By November 2023, the bank held deposits totalling Rs 84,615 crore. These fixed deposits primarily support civic projects, including major initiatives like the Coastal Road, Goregaon Mulund Link Road, and road repairs. Additionally, this marked the first instance of BMC allocating funds to the MMRDA for its projects,” the official added.
Former Mayor and spokesperson of the Shiv Sena UBT, Kishori Pednekar said, “During the pandemic, the economy faced a standstill, but work continued uninterrupted due to BMC's fixed deposits. These deposits serve as a financial lifeline during difficult times. However, the state government's scrutiny of these deposits threatens BMC's financial stability. While MMRDA operates under state government authority and receives taxes from citizens, the state government should provide funding directly to MMRDA if needed, rather than jeopardise BMC's financial security.”
Rakhi Jadhav, leader of the NCP Sharad Pawar said, “MMRDA started many projects in the past, but never asked the BMC for funds. This is the first time MMRDA has demanded fund from the BMC. The state government wants to make the civic body financially unstable.”
Currently Versova- Andheri- Ghatkopar (11.4 km), Dahisar East to D N Nagar (18.60 km), Dahisar East to Andheri East (16.5 km) has started. While other five Metro railway projects are under construction. The city will have a 146.5 km metro network in the future.
Rs 3,000
Amount requested my MMRDA
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