BMC seeks new funding strategy as Mumbai’s infra commitments cross Rs 2 lakh crore

The Brihanmumbai Municipal Corporation (BMC) is looking to appoint a project implementing agency to help develop a broader financing strategy and mobilise funds through alternative sources for its growing infrastructure requirements.

The move covers projects in areas including water supply, wastewater, sanitation and wider urban infrastructure.

The decision comes as BMC’s committed liabilities are reported to be more than Rs 2 lakh crore, while the civic body continues to undertake several large infrastructure projects across Mumbai, reported The Times of India.

Among the major projects currently under way are the Mumbai Coastal Road-North, twin tunnels for the Goregaon-Mulund Link Road and the upgradation of sewage treatment plants.

The BMC has invited e-tenders for an agency that will provide support on financial strategy, debt management and institutional coordination. The selected agency will also be required to identify and structure alternative financing options.

According to a tender issued by the BMC’s chief accountant (finance) on September 21, the agency will prepare a Capital Investment Plan (CIP) and a Debt Management Policy (DMP).

It will also assist the civic body in mobilising funds through multiple financing instruments.

The tender document states that BMC’s infrastructure requirements are growing in both scale and complexity, creating a need to strengthen and diversify the corporation’s financing capacity.

The proposed exercise is therefore focused not only on raising funds for individual projects but also on creating a broader framework for managing capital investment and debt.

The BMC is simultaneously working on several projects involving roads, tunnels, sewage treatment and water-related infrastructure, increasing the financial requirements of the civic body.

The latest tender indicates that the municipal corporation is examining a wider range of financing mechanisms to support its infrastructure programme while managing its existing financial commitments.

The move comes at a time when Mumbai’s major infrastructure projects increasingly require long-term capital planning, debt management and coordination across multiple agencies and funding channels.