'Union Budget Falls Short On Mumbai's Infrastructure Needs,' Say Bureaucrats

Mumbai: While the state was expecting a major push in the Union Budget presented on Tuesday, especially after Prime Minister Narendra Modi’s recent visit and his desire to make Mumbai the fintech capital of India – the figures in the Budget say otherwise.

‘‘Financial provisions announced for various ongoing projects in Mumbai particularly failed to meet minimum expectations’’ was the stock reaction in bureaucratic circles.

Leaders Of Maharashtra Express Satisfaction At The Budgetary Provisions

Though Chief Minister Eknath Shinde and Deputy CMs Devendra Fadnavis and Ajit Pawar expressed satisfaction at the budgetary provisions of around Rs 7,545 crore for infrastructure – a major part of it will go to rural areas and other projects, leaving just a minimal amount for the Mumbai Metropolitan Region (MMR).

A major push was expected for the early completion of the ongoing metro rail network – Mumbai Urban Transport Project (MUTP)-3. A special package for Mumbai for the early completion of big-ticket infrastructure projects such as the 337km metro rail and MUTP-3 was highly desirable, which would put Mumbai infrastructure on the global map, said a senior bureaucrat.

“But the financial provisions for ongoing projects in the MMR are just the mandatory ones. It’s the Central share committed to when approvals were given,” said a senior official associated with the execution of the projects.

Something more was expected when assembly elections were on the cards. The Centre’s share is not enough and we will have to be ready to face a financial crunch in the near future, bureaucrats say. For instance, the Metro 3 project, connecting Cuffe Parade to SEEPZ via the airport is nearing completion and the cost has now reached to Rs 37,000 crore. But this is likely to escalate to Rs 50,000 crore and the Centre’s share of Rs 1087 crore for the current year is nowhere close. The state may have to set aside a significant amount from its own kitty or go for borrowings, said the sources. The same is the case with other projects.

Statement Of An Official

The Union Budget says the Centre will give Rs 908 crore for MUTP-3. This amount is not sufficient if early completion of the improved transport network of the Mumbai Metropolitan Region (MMR) is expected. Such provisions are just about 17 to 18 per cent of the total project costs, committed to while giving approvals. The state share is 25 per cent of the total cost and the rest is being raised via loans, to be repaid by the state government. Mumbai, being the financial capital of India, deserves more. It will not just help its citizens but will contribute to overall growth and in achieving the goal of a trillion-dollar economy. Mumbai contributes the highest in Central taxes and it should get the maximum in return, to further augment its capacity, said the official.

The Central government should announce a special package of Rs 30 to 40 thousand crore for the early completion of the metro rail projects in Mumbai, and Pune and other infrastructure projects such as the improvement of the rail network, roads and sea links. Currently, the state is dependent on the MMRDA for metro links in the MMR. The authority has exhausted its capacity now. The state is unable to invest more thanks to recently announced populist schemes such as ‘Ladki Bahin’ and ‘Ladka Bhau’ Yojanas. Ultimately the MMR and adjoining areas, the major contributors to national and state income will suffer, the Babus fear.