October 1, 2025: The Maharashtra state government has released Rs 954 crore collected through the 1% additional stamp duty levied in the Mumbai Metropolitan Region (MMR), offering significant relief to the Mumbai Metropolitan Region Development Authority (MMRDA). The authority, which has been grappling with mounting debt from large-scale infrastructure projects, can now address its funding crunch and ensure smoother progress on several ongoing developments across the city.
In a further boost to the city’s transport initiatives, the government has also allocated Rs 201 crore to the Mumbai Metro Rail Corporation (MMRC), responsible for constructing the ambitious underground Metro 3 line. Once completed, this corridor is expected to alleviate traffic congestion in some of Mumbai’s busiest areas, transforming daily commutes for residents.
The additional 1% stamp duty was introduced in 2019 with the aim of creating a steady fund for infrastructure expansion across the Mumbai Metropolitan Region. Reports suggest that the levy was expected to generate approximately Rs 5,480 crore by September 2024, according to Lokmat.
The MMRDA had previously requested the state government to release the collected revenue to ease its financial pressures. With the phased disbursal of funds beginning now, Thursday’s announcement marks a crucial step in stabilising the authority’s finances.
The MMRDA has historically relied on loans, development charges, and funds from transport-oriented development (TOD) projects to sustain its operations. With the newly released funds, the authority can repay part of its loans and meet its share of costs for major ongoing projects, ensuring that key infrastructure works continue without disruption.
Officials have described the move as a significant milestone for Mumbai’s urban development, reinforcing the state government’s commitment to expanding infrastructure and enhancing the city’s transportation network.
Source: The Free Press Journal
