August 6th 2023.
Mumbai's Brihanmumbai Municipal Corporation (BMC), the richest municipal corporation in the country, has seen a decrease of Rs. 6,240 crores in its fixed deposits (FDs) in the past year. As of June 29, 2023, the civic body holds Rs. 86,446 crores in its FDs, as revealed under the Right to Information Act.
This decrease is due to large investments in major projects like the Coastal Road, construction of bridges, and stormwater drains before the monsoon, as well as transfer of Rs. 2,000 crores to Maharashtra State Road Development Corporation as their legal share of the premium in 2022, and Rs. 2,689 crores provided to BEST as financial aid.
Despite this decrease, the BMC had experienced an 18 per cent surge in its FD amount in 2022. This was driven by significant revenue generated from premiums through development work, as well as compensation in lieu of octroi and property tax. In the financial year 2011-12, the BMC had Rs. 26,876 crore in FDs, which witnessed a three-fold rise to Rs. 72,000 crore in 2018.
The BMC has now set plans to manage 1,200 tonnes of construction debris by March 2024 by setting up two waste processing plants. With these measures, the BMC aims to increase its FDs to its previous levels.
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