Mumbai’s two key infrastructure agencies — the Mumbai Metropolitan Region Development Authority and the Brihanmumbai Municipal Corporation — are locked in a major funding dispute over Rs 4,973 crore earmarked for vital urban transport projects, including metro corridors, coastal roads, and large-scale connectivity infrastructure across the city.
The contested amount comes from development charges collected by the BMC from real estate projects, redevelopment schemes, and building alterations. The levy, charged at 1% of the ready reckoner rate on land and built-up area, is meant to support urban infrastructure upgrades such as roads, sewage systems, and transport networks.
Following amendments to the Maharashtra Regional and Town Planning Act in 2017, projects classified as “Vital Urban Transport Projects” (VUTP) became eligible for these funds, and the state government directed the BMC to transfer the collected charges to MMRDA. Over the past three years, the civic body collected around Rs 7,998 crore through this levy but transferred only Rs 3,025 crore to MMRDA, leaving a pending amount of Rs 4,973 crore now under dispute.
MMRDA officials say the funds are essential for ongoing and upcoming metro projects, including Mumbai Metro Line 2A, Mumbai Metro Line 3 and Mumbai Metro Line 7. Officials stated that several metro corridors are expected to become operational by the end of the year and require substantial financial support. MMRDA is currently executing infrastructure projects worth nearly Rs 3 lakh crore across the Mumbai Metropolitan Region.
However, the BMC maintains that it also requires the funds for its own mega infrastructure works, including the Versova-Dahisar Coastal Road and the Goregaon-Mulund Link Road project, which includes twin tunnels beneath Sanjay Gandhi National Park. The civic body has reportedly sought VUTP status for these projects and requested nearly Rs 69,000 crore in support.
Architect and urban planner Sulakshana Mahajan cautioned that excessive borrowing for infrastructure expansion could burden taxpayers. “The government is borrowing more and constructing more metro lines. Simply doing this will burden the exchequer. The government should discourage car users; only then will they switch to the metro rail network,” she said.
Source: Hindustan Times
