An ambitious plan to cater to an expected population of 32 million people in MMR two decades later may mean more taxes now
The MMR consists of eight municipal corporations and nine municipal councils
It will cost the Mumbai Metropolitan Region Development Authority (MMRDA) a whopping R5.8 lakh crore to upgrade transport and infra in the Mumbai Metropolitan Region (MMR) over the next 21 years, as per a report by the authority.
This, at a time when the Maharashtra government is saddled with a debt burden of R6.71 lakh crore and is trying to mop up revenue. As per projections, the population of MMR is likely to increase from 24.88 million in the base year (2017) to about 32.2 million by 2041 and employment is likely to increase from about 10.24 million to about 14.91 million during the same period.
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As per the MMRDA, investments required to improve traffic, transport infrastructure, sewerage, water supply, drainage, solid waste management, etc. will go up to R5.8 lakh crore up till 2041.In addition, the projections made by the MMRDA's 'Comprehensive Transportation Study for Mumbai Metropolitan Region' are based on the price estimates in 2017-2018. Going forward, the investment required will only inflate.
"The average annual investment needed for transport infrastructure is about R21,000 crore. By including other infrastructure i.e. water supply, sewerage, drainage, solid waste management, etc… average per annum investment needs on overall infrastructure is about R25,000 crore," reads the report. The cost to be borne by urban local bodies, regional authorities and state government is about R3.79 lakh crore.
On the debt front, all stakeholders in the MMR will have to raise about 31.7 per cent of the total investment through loans. This means R18.39 lakh crore will have to be raised via debt. "All stakeholders of MMR will have to service and repay any such debt," added the report. In other words, newer forms of taxes may be levied on people to service the debt. The MMR consists of eight municipal corporations of Greater Mumbai, Thane, Kalyan-Dombivali, Navi Mumbai, Ulhasnagar, Bhiwandi-Nizamapur, Vasai-Virar and Mira-Bhayandar and nine municipal councils.
Investment needed up till 2041
Rs 5.8 lakh crore: Total
Rs 4.94 lakh crore: To improve traffic and transport infra
Rs 0.86 lakh crore: Other infrastructure (water supply, sewerage, drainage, solid waste management, etc.)
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