State clears ₹2,000-cr loan plan for civic bodies, Mira-Bhayandar to benefit

The loan covers water supply projects in Mira-Bhayandar and Chhatrapati Sambhaji Nagar, and a sanitation project in Nagpur

MUMBAI: The state government has cleared a ₹2,000-crore loan proposal for water supply and sanitation projects in Mira-Bhayandar and two other civic bodies. The move came as the cabinet on Tuesday gave its approval to provide a bank guarantee for the loan from the Housing and Urban Development Corporation (HUDCO). The loan covers water supply projects in Mira-Bhayandar and Chhatrapati Sambhaji Nagar, and a sanitation project in Nagpur.

State clears ₹2,000-cr loan plan for civic bodies, Mira-Bhayandar to benefit

These infrastructure projects will be implemented under centrally sponsored schemes such as Amrut 2.0 and Swachh Bharat Abhiyan.

The Mira-Bhayandar Municipal Corporation will get ₹116.28 crore from HUDCO for a water supply project; Chhatrapati Sambhaji Nagar Municipal Corporation will get ₹822.22 crore for water supply projects; and the Nagpur Metropolitan Region Development Authority will get ₹268.84 crore for sewage treatment projects. The remaining funds covered in the loan proposal will be given to a few more projects in the pipeline. These are expected to be placed before the cabinet in the next few weeks.

“To ensure that these projects are not delayed for want of funds and are completed in time, a structured process has been established under the Maharashtra Urban Infrastructure Development Loan Scheme. The scheme will raise the required funding. Accordingly, as the first phase, approval has been granted to secure a ₹2,000-crore loan from HUDCO. This will enable the local municipal corporations and government agencies to raise their share of project funding,” said a statement from the chief minister’s office (CMO).

According to an official from the CMO, the government is standing guarantee for these loans as these corporations are not in good financial health. “The water supply schemes in Chhatrapati Sambhaji Nagar and Mira-Bhayandar are long delayed and needed financial assistance from the government. Since the government is not in a position to fund the projects, it has stood guarantee for the loan, he explained.

He said in Mira-Bhayandar, for instance, water supply projects worth ₹516.78 crore are being implemented under the central government’s Atal Mission for Rejuvenation and Urban Transformation (AMRUT) 2.0 drive. Central grants will fund ₹172.24 crore, the state government ₹189.5 crore, while the remaining ₹155.04 crore has to be borne by the local municipal corporation. Of this, ₹116 .28 crore will come from the HUDCO loan, according to the official.

The loan plan will bring huge relief to residents of Mira-Bhayandar, located just beyond Mumbai’s city limits. The suburb, in the Mumbai Metropolitan Region (MMR), is spread across around 80sq km and has witnessed explosive growth in recent decades. According to the 2011 Census, the population was 8.09 lakh although current estimates suggest that the figure has almost doubled, placing immense pressure on civic amenities.

Water supply has been under considerable pressure, with residents reeling under year-round shortages. The Mira-Bhayandar Municipal Corporation (MBMC) receives 221 MLD of water—135 MLD from the Maharashtra Industrial Development Corporation (MIDC) and 86 MLD from the Shahad Temghar Water Authority (STWA). Yet, due to leakages, transmission losses and theft, only around 192 MLD actually reaches households.

Chhatrapati Sambhaji Nagar too is reeling under a sustained water shortage. The city, which has a daily requirement of 280 MLD, receives only 130 MLD.

A ₹2,740.75-crore water supply project is being implemented under the centre’s AMRUT 2.0 scheme and could be partially commissioned by October 31, according to the CMO. The project is aimed at meeting the city’s long-term water needs, targeting a projected demand of 604.86 MLD by 2052 for a population of 33.17 lakh.