Mumbai metro dispute: BMC and MMRDA clash over cost-sharing

05 Aug 2024 CW Team

The Mumbai Metropolitan Region Development Authority (MMRDA) and the Brihanmumbai Municipal Corporation (BMC) are locked in a dispute over cost-sharing for metro rail and other multimodal projects.

The MMRDA has invested Rs 19,141.63 crore in developing metro corridors and last-mile connectivity to metro stations over recent years. According to the agreement, the BMC is responsible for covering 25% of this cost, which amounts to Rs 4,959 crore, from the 1% development charge levied on real estate projects. However, the BMC is only willing to pay Rs 2,500 crore, citing significant expenses on the coastal road and other infrastructure projects.

To address this financial shortfall, the MMRDA plans to commercialize its land holdings in the city. It has issued tenders for leasing seven plots in the Bandra Kurla Complex, aiming to raise at least Rs 5,947 crore through this process.

The MMRDA is working on seven metro rail corridors to enhance connectivity in the metropolitan region. These lines?2A, 2B, 3, 4, 6, 7, and 7A?cover a total distance of 142 km. The authority has already spent Rs 19,144 crore and is seeking the BMC?s contribution of Rs 4,959 crore.

An MMRDA official stated, ?In 2016, the state government mandated that the BMC must contribute 25% of the cost for metro projects. This is what we are asking for.? According to directives from the Unified Mumbai Metropolitan Transport Authority (UMMTA) in October 2016, the BMC is also required to contribute 50% of the cost for multimodal integration outside metro corridors.

The MMRDA argues that the BMC?s payment is essential as the metro corridors enhance the city?s infrastructure and increase property values, leading to higher property tax collections.

?The metro projects improve the livability of the city and the quality of commuting,? noted an MMRDA official.

Earlier this year, the MMRDA urged the BMC to fulfill its financial obligation. The authority's letter highlighted that Metro-1 has been operational since June 2014, with Metro-2A and 7 starting operations in January 2023 and serving 250,000 passengers. Civil works are underway for Metro 2B, 3, 4, 4A, 6, and 7A?all within the BMC's jurisdiction. The MMRDA is also focusing on multimodal integration to ensure seamless connectivity to existing transport modes for last-mile access.

The Mumbai Metropolitan Region Development Authority (MMRDA) and the Brihanmumbai Municipal Corporation (BMC) are locked in a dispute over cost-sharing for metro rail and other multimodal projects. The MMRDA has invested Rs 19,141.63 crore in developing metro corridors and last-mile connectivity to metro stations over recent years. According to the agreement, the BMC is responsible for covering 25% of this cost, which amounts to Rs 4,959 crore, from the 1% development charge levied on real estate projects. However, the BMC is only willing to pay Rs 2,500 crore, citing significant expenses on the coastal road and other infrastructure projects. To address this financial shortfall, the MMRDA plans to commercialize its land holdings in the city. It has issued tenders for leasing seven plots in the Bandra Kurla Complex, aiming to raise at least Rs 5,947 crore through this process. The MMRDA is working on seven metro rail corridors to enhance connectivity in the metropolitan region. These lines?2A, 2B, 3, 4, 6, 7, and 7A?cover a total distance of 142 km. The authority has already spent Rs 19,144 crore and is seeking the BMC?s contribution of Rs 4,959 crore. An MMRDA official stated, ?In 2016, the state government mandated that the BMC must contribute 25% of the cost for metro projects. This is what we are asking for.? According to directives from the Unified Mumbai Metropolitan Transport Authority (UMMTA) in October 2016, the BMC is also required to contribute 50% of the cost for multimodal integration outside metro corridors. The MMRDA argues that the BMC?s payment is essential as the metro corridors enhance the city?s infrastructure and increase property values, leading to higher property tax collections. ?The metro projects improve the livability of the city and the quality of commuting,? noted an MMRDA official. Earlier this year, the MMRDA urged the BMC to fulfill its financial obligation. The authority's letter highlighted that Metro-1 has been operational since June 2014, with Metro-2A and 7 starting operations in January 2023 and serving 250,000 passengers. Civil works are underway for Metro 2B, 3, 4, 4A, 6, and 7A?all within the BMC's jurisdiction. The MMRDA is also focusing on multimodal integration to ensure seamless connectivity to existing transport modes for last-mile access.

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