Mumbai: The BMC will contribute ₹950 crore as their share for funding the Mumbai Urban Transport Project 3A. However, the civic authorities have requested the state government to divert the amount from the compensation the BMC annually receives for the abolition of Octroi.
As per the estimates of 2023-24, the civic body will get ₹12,344 crore as compensation in lieu of Octroi.
MVRC to receive funds for project
The Mumbai Rail Vikas Corporation (MVRC) is a 50:50 joint venture between the Indian Railways and the Maharashtra government that plans and implements rail projects specifically for Mumbai. It will receive funds for the MUTP 3 A projects with a cumulative total of over ₹33,690 crore. Around 12 projects will be undertaken. Some projects include new suburban rail corridors on the Panvel-Karjat and Airoli-Kalwa routes, the quadrupling of Virar-Dahanu, procuring 238 air-conditioned local trains, expansion of the Harbour line on Goregaon-Borivali, etc.
Proposal to send funds approved by BMC
The proposal to send funds of ₹950 crore has been approved by the civic administration. The first installment will be ₹614.96 crore while the remaining amount of ₹335.11 crore will be shared with MVRC in the next eight years, said the civic sources.
“The BMC annually gets compensation from the state for revenue loss due to the implementation of the goods and services tax (GST) and the abolition of Octroi. The estimated amount is around ₹12,000 crore this year. We have requested the government to divert ₹950 crore from it for the MUTP project.”
BMC's bifurcation of funds for project
BMC share for funding MUTP 3 A: ₹950 crore
First installment: ₹614 crore
Second installment: ₹335 crore
To be shared in eight years
Compensation in lieu of Octroi: ₹12,344 (for 2023-24)
