Maha: BMC proposes Green Bonds, use of strategic reserves to finance development projects

Mumbai, Feb 25 (IANS) The Brihanmumbai Municipal Corporation (BMC) in the annual budget for 2026-27, presented on Wednesday, has proposed a slew of measures, including the use of strategic reserves and Green Bonds, to mobilise funds for financing development projects.

In a significant administrative move following the political shift in the corporation, the BMC has decided to utilise its fixed deposits (FDs) for developmental projects.

The BMC currently holds total deposits of Rs 81,449.32 crore. Out of this, Rs 44,826.23 crore are reserved for statutory liabilities and cannot be touched.

The administration has indicated that the remaining Rs 36,623.09 crore will be utilised to fund various ongoing and upcoming infrastructure projects. Apart from this, the BMC plans to mop up resources through Green Bonds, entertainment tax, hawker regulation and advertisement policy.

The corporation aims to issue ‘Green Bonds’ worth Rs 1,000 crore to attract investors for eco-friendly infrastructure, which could also fetch a Rs 100 crore central subsidy.

In a move to declutter the city, under its advertisement policy, hoardings larger than 40×40 feet are banned, along with a total prohibition on advertisements on footpaths and building terraces.

The BMC plans to reintroduce entertainment tax from October 2026, following the expiration of the state government’s current waiver.

To identify authorised vendors and curb illegal encroachment, the BMC is launching QR code-based identity certificates for all licensed hawkers.

The budget places heavy emphasis on improving Mumbai’s infrastructure. A massive provision of Rs 9,650 crore has been made for bridge works.

Currently, 101 bridge projects are underway; 24 are complete, 23 are expected to be finished by March 2026, 31 in 2026-27, and the remaining 23 by 2028-29. Further, Rs 4,000 crore has been allocated for the Versova-Dahisar stretch (Phase 2).

For the Goregaon-Mulund Link Road (GMLR) east-west connectivity project, Rs 2,650 crore was allocated. The BMC continues to bail out the BEST undertaking with a grant of Rs 1,000 crore for the upcoming fiscal year.

Further, BMC has earmarked a total of Rs 7,456.40 crore for the health department, while Rs 1,062 crore is allocated for the redevelopment and modernisation of major facilities, including Sion, Rajawadi, Nair, and the Bandra Cancer Hospital.

The BMC plans to build on-street and off-street parking through Public-Private Partnership (PPP) models, allocating Rs 6,875 crore.

About 53 hectares of land adjacent to the Mumbai Coastal Road will be developed into a green belt and park, with a provision of Rs 950 crore.

–IANS

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