BMC proposes special fund for development projects, awaits final approval

The BMC has proposed to set up a “special project fund” to ensure that no mega development projects in the city face financial crunch.

According to BMC estimates, in the next few years, various development projects across Mumbai will cost around Rs 7,884 crore. A proposal on setting up the special project fund will be tabled before the BMC Standing Committee for its final approval on Wednesday.

Officials said the fund will be used in development works like reconstruction work of at least 12 bridges over railway tracks in coordination with Maharashtra Rail Infrastructure Development Corporation Limited, costing Rs 1675 crore, and other bridges under BMC jurisdiction.

The money will also be used on rejuvenation works near Mithi, Poisar and Dahisar rivers as well as on storm water pumping stations.

“These projects will require huge funds. To make sure that fund shortage does not affect the progress of works in future, such steps are required. To upgrade basic infrastructure and create new ones, it is important to create an independent fund. Taking note of this, it was decided to have a long term financial policy,” said an official from the BMC.

In February, Municipal Commissioner Iqbal Singh Chahal, in his budget speech, had first proposed a special project fund. According to the proposal, for this year, BMC will transfer accumulated surplus from other departments to this the special fund to raise Rs 4,000 crore.

Also, this year, the civic body has proposed to take loans worth around Rs 5,876 crore from different BMC departments. For 2021-22, BMC has proposed capital expenditure of Rs 18,750.99 crore despite witnessing a sharp decrease in revenue due to Covid-19.

The civic body is executing several mega projects. The coastal road, Goregaon-Mulund link road and Mumbai Sewage Disposal Project could cost over Rs 35,000 crore, said an official.