Mumbai Municipality Agrees to Pay Rs 1,000 Crore to MMRDA Amid Financial Strains

Municipality Reaches Agreement

The Mumbai Municipal Corporation, which previously claimed it was unable to share the metro project costs due to a lack of funds, has now agreed to pay Rs 1,000 crore to the Mumbai Metropolitan Region Development Authority (MMRDA). On Friday, the municipality decided to disburse the first installment of Rs 500 crore.

Financial Obligations and Delays

The municipality owes a total of Rs 4,960 crore to MMRDA for various projects, of which Rs 2,000 crore has already been paid. Despite requests for the remaining amount, the municipality had been reluctant to release the funds immediately, citing financial constraints. The state government has directed local bodies and corporations to cover their share of metro project costs, leading to the municipality's current decision to fulfill its obligations.

Concerns Over Municipal Projects

The municipal administration is actively trying to raise funds for its own projects, primarily through persistent property tax collection. However, there is some dissatisfaction as municipal funds are being diverted to MMRDA projects. The municipality has had to make this payment reluctantly due to direct orders from the state government.

Source of Funds

The municipality collects construction fees through building permits, and it has been decided that MMRDA will be paid from these collected funds. Despite the financial strain, the municipality is moving forward with the payments to ensure compliance with state government directives and support the ongoing metro projects.

This decision marks a significant shift in the municipality's stance, highlighting the challenges and responsibilities local bodies face in balancing their financial obligations and development projects.