BMC Carries FDs of 80,000 crores, Rs 1600 crore interest received this year.

Although the Brihanmumbai Municipal Corporations (BMC) spent more than Rs 2,000 crore on tackling the Covid 19 pandemic, the corporation’s collection in fixed deposits (FDs) crossed Rs 80,000 crore this year. These Fixed Deposits are locked in different state-run and private banks.

 

An interest of Rs 1,600 crore on its Fixed Deposits (FD) was received by the Brihanmumbai Municipal Corporation (BMC) and the combined amount is now just around 80,000 crore, said the Additional Municipal Commissioner.  The Brihanmumbai Municipal Corporation (BMC) in this year’s budget had dipped into the Rs 50,952 crore Fixed Deposits (FD) added to the infrastructure development fund for generating mega projects like Mumbai Coastal Road. The Brihanmumbai Municipal Corporation (BMC) is also the curator of Rs 26,283 crore Fixed Deposits that are in employee’s provident fund and pension accounts. 

 

Every year the civic body earns up to 1800 crore interest on Fixed Deposits. Like last year there was a reduction in interest so the amount was reduced to Rs 700 crore but in the current year, the Brihanmumbai Municipal Corporation (BMC) has got around Rs 1600 crore interest.

 

This time the administration did not raise money from the market through the bonds but the administration dipped into its Fixed Deposits and took an internal interest-free loan of Rs 10,564 crore so that it could meet the increasing expenditure. Out of this, Rs 5,876 crore had to be raised as an internal loan from funds kept under two departments.  The Brihanmumbai Municipal Corporation in a statement said that Rs 3,500 crore was from the garden development fund, which was generated to create long-term assets, and Rs 2,376 crore from the depreciation fund which can be used for capital work.