BMC Seeks Approval for Tender Relaxation Amid Infrastructure Financing Challenges
BMC is pursuing ex-post facto approval to relax tender conditions for appointing a credit rating agency essential for raising funds through green bonds. This move comes as the corporation faces declining cash reserves due to extensive infrastructure commitments totaling ₹2.45 lakh crore.
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The Brihanmumbai Municipal Corporation (BMC) is requesting approval to bypass certain tendering requirements to appoint a credit rating agency needed for green bond issuance. The initiative is crucial for financing various infrastructure projects, including sewage treatment and desalination plants.
Notably, BMC's fixed deposits have decreased by ₹3,339 crore to ₹77,905 crore by March 2026, attributed to significant payouts for infrastructure works. The corporation reports a growing revenue gap, with estimated annual revenues at ₹80,952.56 crore against actual income of ₹51,510.94 crore. Increasing reliance on reserve funds raises concerns about long-term financial sustainability as infrastructure spending pressures cash reserves.
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