The Brihanmumbai Municipal Corporation (BMC) has reported a decline of Rs 3,639 crore in its fixed deposit (FD) holdings over two months, as funds are being deployed to support its large-scale infrastructure development programme. The FD corpus dropped from Rs 81,449 crore in February to Rs 77,810 crore by the end of April 2026, according to civic financial records.
India’s richest civic body has seen a gradual reduction in its deposits in recent years after a prolonged period of growth between 2014–15 and 2021–22, when its FD portfolio had crossed the Rs 91,000 crore mark. In the 2026–27 budget estimates, the corporation projected its FD holdings at Rs 81,449 crore, slightly lower than Rs 81,774.42 crore estimated in the previous financial year.
Out of the current corpus, Rs 44,826.23 crore has been earmarked for statutory obligations such as provident fund, pensions, gratuity payments, and contractors’ security deposits. This leaves Rs 36,623.09 crore available for capital expenditure and infrastructure funding.
The reduction in reserves comes at a time when the civic body is executing an ambitious infrastructure pipeline worth RS 2.44 lakh crore. Major projects under this programme include the Versova–Dahisar–Bhayander Link Road, the Gargai Dam project, and a proposed desalination plant aimed at strengthening Mumbai’s water supply system.
Fixed Deposits Over The Years
To finance these initiatives, the BMC plans to utilise Rs 13,765.74 crore from its fixed deposits and an additional Rs 14,295.86 crore from designated special funds during the current financial year.
Despite the decline in reserves, officials have emphasised that investment efficiency has improved. A senior civic official stated, “We have revamped the way the BMC invests its fixed deposits to maximise returns.”
The official further added, “Since July 2024, all FD placements have been made through a transparent and competitive online bidding system, replacing the earlier practice of seeking interest rate quotations through emails and letters. The new mechanism has generated more interest income compared to the previous financial years.”
The introduction of the online bidding system is aimed at improving transparency and ensuring better returns on municipal investments, even as the civic body continues to fund one of the largest infrastructure expansion programmes in its history.
While the drawdown in fixed deposits reflects heavy capital deployment, officials maintain that the financial strategy is aligned with long-term infrastructure requirements and planned urban development goals for Mumbai.
Source: The Free Press Journal
