Metro train routes are funded by ₹1,000 crore that Mumbai BMC pays to MMRDA. 25% of BMC’s funding will go toward infrastructure initiatives like metro rail.
MUMBAI: The BMC has granted the Mumbai Metropolitan Region Development Authority (MMRDA) ₹1,000 crore in a first step toward modernizing the city’s public infrastructure. This is a portion of the ₹5,000 crore that the planning body for Mumbai and its surrounding metropolitan area, MMRDA, required the BMC to pay.
The ₹1,000 crore, according to sources, was a donation toward the building of metro rail routes. MMRDA officials state that construction on some multimodal projects, including the metro rail, costing ₹19,800 crore, has been finished. Of these projects, the BMC is required to contribute 25%.
Government sources said that the Centre formulated a comprehensive policy in 2016 for financing infrastructure projects, such as metro rail, carried out by planning organizations like MMRDA. This policy is currently in effect. This regulation specifies that the local municipal corporation’s contribution shall be 25%. A further 25% must come from the state government’s coffers and implementation bodies such as MMRDA, with loans accounting for the remaining 50%.
The reasoning put out by the authorities is that the capital worth of the land and property values have been skyrocketing due to the expansion of the city’s infrastructure, particularly the new metro rail lines, which have increased property tax revenue. According to MMRDA sources, “the civic body is enjoying the fruits of the city infrastructure’s improvement.” “Real estate and property values are directly correlated with infrastructure, and these have been rising over the past few months as a result of newly constructed or already-operating metro lines.”
A metro rail route spanning 337 kilometers and costing several hundred crores of rupees has been undertaken by MMRDA. It has planned a few more metro lines and is currently building more metro corridors for Lines 2B (DN Nagar-Mandale), 4 (Wadala-Kasarvadvali), and 6 (Swami Samarth Nagar-JVLR-Kanjurmarg). Currently, it operates 20 km of the metro rail route (Lines 7 and 2A between Gundavali-Dahisar-Andheri West). Additionally, the state cabinet has approved ₹4,000 crore for it to purchase Metro 1 on the Versova-Andheri-Ghatkopar line from the Anil Ambani-led Mumbai Metro One Pvt Ltd.
Government agency employees in the fields of transportation and urban planning stated that improved municipal infrastructure played a significant role in driving up real estate values. The BMC has collected ₹1,622 crore of property tax, out of its target of ₹2,978 crore for 2023–24, according to the most recent numbers.
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