The Brihanmumbai Municipal Corporation (BMC), India’s wealthiest municipal body, has experienced a significant decrease in its financial reserves. Latest reports indicate a drop of Rs 3,544 crore (approximately $425 million) over an eight-month period. These reserves, held as fixed deposits, have fallen from Rs 81,449 crore in February to Rs 77,905 crore.
This reduction occurs while the BMC manages a substantial liability of Rs 2.34 lakh crore for ongoing infrastructure projects. A civic official has cautioned that this trend could lead to a liquidity crisis in the coming years. The official noted that only 49 percent of the current reserves are available for infrastructure projects, which are valued at nearly four times the usable amount.
Despite the current decline, the BMC is not expected to face an immediate financial crunch this year. This is attributed to increased property tax collections and revenue from the building proposal department. However, the official stressed the importance of controlling expenditure and managing liabilities to prevent future financial difficulties.
Looking ahead, the BMC plans to raise funds by issuing green bonds, aiming to secure at least Rs 10,000 crore. These funds are intended to finance various infrastructure developments, including wastewater treatment facilities, desalination plants, water tunnels, and a proposed dam.
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Source: indianexpress.com
