Mumbai Metro Projects Face Funding Hurdles as BMC and MMRDA Disagree on Cost-Sharing
The Mumbai Metropolitan Region Development Authority and the Brihanmumbai Municipal Corporation are at odds over cost-sharing for metro rail and other multimodal projects, with the BMC willing to pay only ₹2,500 crore of the ₹4,959 crore owed to the MMRDA
Mumbai MetroMmrdaBmcCost SharingInfrastructure DevelopmentReal Estate MumbaiAug 03, 2024
According to the state government's directions in 2016, the BMC is required to contribute 25% of the cost for metro projects, which is what the MMRDA is asking for. The authority argues that the metro corridors have increased the capital value of land and property prices, leading to higher property tax collections.
Urban planners agree that infrastructure development has a direct impact on real estate and property prices, which have appreciated significantly over the past few months due to the operational and under-construction metro lines.
To overcome the funding hurdle, the MMRDA has decided to commercialize its land bank in the city, inviting tenders for leasing seven plots in the Bandra Kurla Complex. The authority hopes to raise at least ₹5,947 crore from this exercise, which will be invested in infrastructure projects, transportation, and other development initiatives across the city.
The BMC, on the other hand, has paid ₹950 crore in March and ₹1000 crore in April, totaling ₹2,500 crore, which is 50% of the 1% development charge collected from real estate projects. However, the MMRDA is not satisfied with this amount and is seeking the remaining ₹2,459 crore.
The cumulative cost of 10 metro projects is pegged at ₹75,000 crore, with total receipts for 2024-25 estimated at ₹39,453 crore, while total expenditures are estimated at ₹46,921.29 crore. The MMRDA is exploring various options to raise funds, including leasing its land bank and raising ₹50,000 crore via bonds.
Frequently Asked Questions
What is the dispute between MMRDA and BMC over?
The dispute is over cost-sharing for metro rail and other multimodal projects, with the BMC refusing to pay its share of ₹4,959 crore owed to the MMRDA.
How much has MMRDA spent on metro corridors and last mile connectivity?
MMRDA has spent ₹19,141.63 crore on developing metro corridors and last mile connectivity to metro stations.
What is the BMC's argument for not paying its share?
The BMC claims it has incurred heavy expenses on other infrastructure projects, such as the Coastal Road and Goregaon Mulund Link Road, and is willing to pay only ₹2,500 crore.
How is MMRDA planning to overcome the funding hurdle?
MMRDA has decided to commercialize its land bank in the city, inviting tenders for leasing seven plots in the Bandra Kurla Complex, and hopes to raise at least ₹5,947 crore from this exercise.
What is the cumulative cost of the 10 metro projects?
The cumulative cost of the 10 metro projects is pegged at ₹75,000 crore.
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