The Brihanmumbai Municipal Corporation (BMC) has requested the Urban Development Department (UDD) to allocate 50% of the Vital Urban Transport Project (VUTP) funds for its projects, including the Coastal Road and Goregaon-Mulund Link Road. These projects have substantial budgets and are deemed crucial. The BMC has collected INR 5,000 crore through a 1% development-fee under VUTP, already paying INR 2,000 crore to the Mumbai Metropolitan Region Development Authority (MMRDA). With 14 metro projects under VUTP, seven within BMC's jurisdiction, BMC seeks to reserve the remaining INR 3,000 crore for its own initiatives. UDD has yet to decide.
The Brihanmumbai Municipal Corporation (BMC) has approached the Urban Development Department (UDD) to request the allocation of 50% of the funds gathered under the Vital Urban Transport Project (VUTP) for its own significant infrastructure projects. A senior civic official disclosed that the BMC sent a letter to the UDD, seeking approval to utilise half of the VUTP funds for major ventures, including the Coastal Road and the Goregaon Mulund Link Road. These projects, whose foundation stones were laid by Prime Minister Narendra Modi, have budgets exceeding INR 24,000 crore and INR 12,000 crore, respectively, and are deemed crucial due to their substantial costs and importance.
The BMC has amassed INR 5,000 crore by levying an additional 1% development fee on developers under the VUTP provision. This financial strategy was permitted by the UDD to help urban local bodies, such as those in Pune and Nagpur, contribute 25% of the metro project costs within their jurisdictions. In June 2019, the UDD included all metro projects under the VUTP, requiring local bodies to share a portion of the project expenses. Consequently, 14 projects fall under the VUTP, with seven-Metro Lines 3, 2A, 2B, 4, 7, 7A, and the Monorail-located within BMC's jurisdiction.
The BMC has already disbursed INR 2,000 crore to the Mumbai Metropolitan Region Development Authority (MMRDA). To address the remaining INR 3,000 crore, the BMC has urged the UDD to approve the reservation of 50% of the VUTP funds for its initiatives. The UDD has yet to respond to this request.
Simultaneously, sources from the MMRDA have indicated their intention to approach both the UDD and the BMC to reclaim the remaining funds. They argue that all money collected under the VUTP was originally intended for MMRDA-initiated projects. The BMC's move to include its big-budget projects under VUTP and seek a substantial portion of the collected funds underscores the financial challenges and significant costs associated with these critical urban development efforts. The decision from the UDD remains pending, with potential implications for the funding and progression of these vital infrastructure projects.
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