Mumbai's Major Infrastructure Projects: Progress and Challenges
The ₹74,527-crore budget presented by the Brihanmumbai Municipal Corporation (BMC) last year — the largest ever for any civic body in the country — may be surpassed in 2026-27. However, many projects from last year were reported to have started and subsequently shelved, or are yet to see the greenlight.
Key infrastructure allocations are expected for the Goregaon–Mulund Link Road (GMLR), the northern extension of the Coastal Road from Versova to Bhayandar, and the long-pending Gargai Dam project, aimed at strengthening Mumbai’s water security.
The ₹3,000-crore Gargai Dam in Palghar district is designed to add 440–450 million litres per day to Mumbai’s supply and includes a 1.6 km to 2.5 km tunnel connecting it to Modak Sagar reservoir, with completion targeted by 2029, as per HT.
However, several headline projects announced in 2025-26 remain stalled or scaled down. The proposed 5.6-km elevated corridor from Orange Gate to Grant Road, allocated ₹90 crore last year, may be shelved due to overlap with the Mumbai Metropolitan Region Development Authority’s (MMRDA) proposed tunnel between Orange Gate and Marine Drive, as per a report by the Indian Express (IE).
Similarly, the Mumbai Eye tourism project has seen no progress, while implementation of the Universal Footpath Policy — backed by ₹100 crore — has yet to begin despite tenders being floated in November 2025, as per IE.
The BMC Budget 2026 is expected to have the outlay crossing ₹80,000 crore, as per a report by the Hindustan Times (HT). The budget on February 25, scheduled to be tabled before the standing committee after a four-year gap, is likely to reflect the infrastructure and revenue priorities of the ruling Mahayuti alliance.
“The budget increases every year by at least 5%, so it is a given that it will touch the ₹80,000 mark,” a senior civic official told HT, adding that no new taxes are proposed this year. The projected increase is attributed largely to an additional ₹800 crore in property tax collections, driven by automatic revisions linked to ready reckoner rates and stricter recovery measures. The civic body has also seen higher premiums from the real estate sector, the report noted.
On water charges, Mumbai Mayor Ritu Tawde announced a suspension of the annual increase of up to 8%. However, officials cautioned that freezing tariffs could result in a revenue loss of around ₹100 crore annually. “Now this will not happen, as the annual water charges hike has not been approved,” a senior hydraulic department official said, as per HT.
