In the coming years, those entering and exiting Mumbai will have to continue to cough up the toll, not just at five entry points, but six. This time the government agency earning revenue will be different, providing no relief from the payment for another few decades to come.
MTHL Toll
In the last week’s budget meeting of the Mumbai Metropolitan Region Development Authority (MMRDA), it was decided that the development body will take over from the Maharashtra State Road Development Corporation (MSRDC) by being the toll collection agency. The meeting was chaired by Chief Minister Eknath Shinde, who is also chairman of the development authority.
Moreover, MMRDA is also looking at collecting toll from the Mumbai Trans Harbour Link, the sixth entry and exit point of Mumbai.
MMRDA to take over as toll collection agency from MSRDC from 2027
The existing arrangement of toll collection by MSRDC via the toll agency is scheduled to expire on Nov 19, 2026. From 2027 onwards, MMRDA will deploy another toll agency to raise funds for infrastructure projects planned in the Mumbai Metropolitan Region (MMR).
So far, MSRDC had collected toll at five entry points to recover construction cost of 55 flyovers built from the late 1990s onwards as well as to maintain them.
As the size and number of infrastructure projects that MMRDA has a mandate of has been ballooning, so are the funds required.
So far, the revenue for the development authority has been from monetising the land bank in Bandra Kurla Complex as well as Wadala, Metro cess levied on every sale of property and gift deed transactions, renting of exhibition ground, advertisement spaces, permission for constructions at its notified areas within Mumbai and rest of MMR, government grants, urban transport fund, etc.
Monetisation of assets of various MMRDA projects will create funds
These sources are turning out to be inadequate leading to a shortfall and requirement of debt. To narrow the gap, additional revenue sources are being looked at, including monetising of its assets, Infrastructure Investment Trusts (InvITs), Toll Operate Transfer, and Alternate Investment Fund, to name a few.
“Monetisation of assets of various MMRDA projects will create funds which can be utilised to repay loans and new projects can also be taken from the balance funds,” said an MMRDA official.
The MMRDA’s budget for 2023-24 approved last week has estimated receipts of Rs23,689.77 crore and expenditure of Rs28,704.98 crore, which means a deficit of Rs5,014.41 crore.
(To receive our E-paper on WhatsApp daily, please click here. To receive it on Telegram, please click here. We permit sharing of the paper's PDF on WhatsApp and other social media platforms.)
