Mumbai: BMC Fixed Deposits Drop By ₹3,639 Crore In 2 Months Amid ₹2.44 Lakh Crore Infrastructure Push
· Free Press Journal
Mumbai, June 30: The fixed deposits (FDs) of the Brihanmumbai Municipal Corporation (BMC), India's richest civic body, have declined by Rs 3,639 crore in the last two months. According to civic records, the BMC's deposits across various banks fell from Rs 81,449 crore in February to Rs 77,810 crore by the end of April 2026.
FD Corpus Continues To Decline
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The BMC's FDs, which grew steadily from 2014-15 to 2021-22 and crossed the Rs 91,000 crore mark, have been witnessing a year-on-year decline. In its 2026-27 Budget, the civic body estimated its FD corpus at Rs 81,449 crore, down from Rs 81,774.42 crore in 2025-26.
Of the existing total deposits, in 2026-27, Rs 44,826.23 crore has been set aside to meet statutory liabilities, including provident fund, pension, gratuity and contractors' security deposits, leaving Rs 36,623.09 crore available for capital expenditure.
The shrinking reserves come at a time when the BMC is undertaking infrastructure projects worth Rs 2.44 lakh crore, including the Versova-Dahisar-Bhayander Link Road, the Gargai Dam and a desalination plant. To finance these projects, the civic body plans to mobilise Rs 13,765.74 crore from its FDs and another Rs 14,295.86 crore from special funds in the current financial year.
Online Bidding Boosts Returns
"We have revamped the way the BMC invests its fixed deposits to maximise returns," a senior civic official said.
"Since July 2024, all FD placements have been made through a transparent and competitive online bidding system, replacing the earlier practice of seeking interest rate quotations through emails and letters. The new mechanism has generated more interest income compared to the previous financial years."
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