"BMC Allocates 1,000 Crore from Fixed Deposits to MMRDA for Metro Projects"

The Brihanmumbai Municipal Corporation (BMC) has tapped into its fixed deposits (FD) to provide Mumbai Metropolitan Region Development Authority (MMRDA) with Rs 1,000 crore for ongoing Metro projects in the city. Following this allocation, BMC's fixed deposits now stand at Rs 83,000 crore.

BMC officials clarified that this allocation was not accounted for in its 2023-24 budget and has therefore been included in the revised estimate.

The decision to release the funds came after a letter dated March 15 from the state urban development department requested the municipal commissioner to contribute financially to the Metro rail projects. The letter referred to the fifth meeting of the Unified Mumbai Metropolitan Transport Authority, chaired by the chief secretary on October 13, 2016, where it was decided that urban local bodies, including BMC, would contribute 25% of the project completion cost. Additionally, the implementation cost of all multimodal integration works within the catchment area of Metro and monorail stations would be shared by the urban local body concerned and MMRDA.

MMRDA is overseeing the construction of Metro corridors with a cumulative cost of Rs 70,000 crore. As per the letter, BMC's total financial contribution to MMRDA amounts to Rs 19,891 crore (25% of Metro project cost + 50% multimodal integration cost). The letter, a copy of which is in possession of TOI, requested an allocation of Rs 4,960 crore, with Rs 2,000 crore to be made available immediately to MMRDA in the first phase.

However, BMC officials clarified that since there was no provision in the 2023-24 budget, only Rs 1,000 crore has been sanctioned, and the remainder will be allocated in the next financial year. Sources stated, "BMC utilized its FDs to provide MMRDA with Rs 1,000 crore last week. The balance Rs 3,959 crore will be disbursed next fiscal."

In other recent news, several articles were published including discussions about top BMC job replacements, Congress disclosing financial details, and state-government clashes with the Election Commission of India (ECI) over BMC commissioner's transfer.

ET