The Brihanmumbai Municipal Corporation (BMC) has significantly accelerated its infrastructure spending, utilising 87 per cent of its capital expenditure allocation for 2025–26. Of the total earmarked funds, the civic body spent Rs 39,159 crore, marking a notable increase from the 77 per cent utilisation recorded in the previous financial year.
Official data indicate that in 2024–25, the BMC deployed Rs 28,755 crore towards capital works such as roads, bridges, and drainage systems. The latest figures suggest a clear push towards faster project execution and enhanced on-ground implementation.
Topping the expenditure list is the ambitious Mumbai Sewage Disposal Project (MSDP), a Rs 30,000-crore initiative aimed at overhauling the city’s ageing sewage infrastructure. During 2025–26, the project saw spending of Rs 6,594 crore, exceeding its initial allocation and necessitating a revised estimate. Consequently, the project budget has been increased from Rs 6,499 crore to Rs 7,029 crore. The MSDP includes the construction and upgrading of seven sewage treatment plants in Worli, Bandra, Dharavi, Versova, Malad, Ghatkopar and Bhandup, to ensure that most wastewater undergoes secondary treatment before discharge.
Other departments have also recorded substantial spending. The water supply department utilised 88 per cent of its Rs 4,800 crore allocation, while the roads department spent Rs 5,799 crore on the ongoing road concreting programme. Expenditure by the bridges department stood at Rs 4,004 crore, and the storm water drains department accounted for Rs 1,181 crore.
The BMC’s total budget for 2025–26 was Rs 74,427 crore, of which 58 per cent was set aside for capital expenditure. A BMC official said, “BMC has consciously increased capital expenditure over the last few years. If funds are not used, they lapse.”
However, concerns remain. Kalina corporator Tulip Miranda said, “Flagship projects like Coastal Road or Goregaon Mulund Link Road are great, but BMC’s basic duty is to provide and improve everyday civic services. Our civic hospitals, for instance, need a revamp.” RTI activist Anil Galgali said that despite the large capex, the quality of work is often poor. “BMC should ensure proper supervision of work,” he said.
Meanwhile, the civic body is exploring the use of green bonds to finance its sewage treatment projects, which are projected to cost over Rs 30,000 crore. The proposal is currently undergoing accreditation and credit rating processes, both essential before any bond issuance.
Source: The Times of India
