Will BMC break the bank for big infra play?

Keeping the election year in mind, the country's richest civic body, the Brihanmumbai Municipal Corporation (BMC), is likely to focus on its massive infrastructure projects despite its declining income. Ongoing projects like road concreting, bridge construction, the desalination project, sewerage treatment plants, Goregaon-Mulund Link Road, and the Versova to Bhayandar coastal road will receive significant funding. The BMC may also prioritise cleanliness drives and pollution
mitigation efforts.

The civic body has Rs 86,000 crore in fixed deposits (FD). With no new revenue sources and declining traditional ones, the BMC administrator will present the second budget on Friday without elected representatives. The BMC couldn't implement the proposed 8 per cent hike in water bills, and property tax bills remain unissued. Solely reliant on compensation in lieu of octroi from the state government and fixed deposits, last year, the BMC incurred expenses of R52,619 crore, withdrawing Rs 18,746 crore from fixed deposits. This year, similar expenses are anticipated.

The almost complete Coastal Road project of BMC. File pic/Satej Shinde

Road concreting and bridge construction will dominate the budget, although the BMC has not managed to complete even 10 per cent of the work it started a year ago. Tenders for remaining concreting work worth Rs 8000 crore are underway. Even though only two bridges were completed this year, the work of at least 10 bridges is incomplete; there are a few bridges like Sion and Byculla in the pipeline. Therefore, the road and bridge department will receive a significant portion of capital expenditure.

Despite ongoing projects like the Coastal Road from Nariman Point to Worli nearing completion, work on the Versova-Dahisar and Dahisar-Bhayandar links will commence, with a budget allocation expected. The Goregaon Mulund Link Road tunnel work faces delays, but other works like flyovers, road widening, subways, and skywalks are progressing and will receive substantial budgetary allocations.

Though seven wastewater treatment facility contracts were awarded in 2022, with Rs 2,792 crore allocated for the Rs 27,310 crore project, expenses have been minimal in the last 10 months. However, works at various plants in Worli, Bandra, Dharavi, Versova, Bhandup, and Ghatkopar locations will accelerate this year with the support of the budget, except for the Malad plant due to mangrove-related issues. Ambitious projects like the desalination project and the Gargai dam, aimed at increasing the city's water supply, have faced delays. Despite slow progress on the Gargai project, a fair share of the budget may be allocated this year. Similarly, the desalination project, currently in the tender stage, may also receive significant funding.

Environmental initiatives have seen limited progress, but the recently launched weekly cleanliness drive may receive additional funding. The BMC may also address waste collection and disposal in slums and allocate funds for the long-pending Mithi rejuvenation project.

Rs 18,746cr
Amount withdrawn from FD last year