Mumbai civic body plans to retire Rs 3000 crore debt

The Municipal Corporation of Greater Mumbai (MCGM) is embarking on a series of radical financial reforms to bring greater transparency into its functioning.

The corporation is moving to a fund-based accounting system (F-BAS), based on what is recoverable, from the first quarter of the next fiscal. Also on the anvil is a radical debt restructuring exercise to retire old debts worth Rs 3000 crore.

The corporation - the richest civic body in the country - is also initiating a process of listing out its all assets and liabilities, as well as embarking on an ERP solution for all its human resource management, materials management an budget management requirements.

Plus, the corporation is moving towards a performance-oriented budget. And much of this information will be available in the public domain at a mouse click, as MCGM also plans to adopt a Public Record of Operational Finances (PROF) system.

But right at the beginning of this process of creating greater transparency, is a SWOT analysis for the city.

"If we are to attract investments, we have to first position it - whether as an entertainment, IT, services or financial hub. In order to position the city we need an analysis of the city's strengths, weaknesses, opportunities and threats. We have invited expressions of interest from interested parties to undertake the SWOT analysis. We have invited EoIs for both SWOT and debt restructuring," said MCGM additional commissioner Manu Kumar Srivastav.

Mumbai is the second city in the country to undertake the analysis, after Bangalore to initiate a SWOT. Part of the funds for the SWOT will come from the Centre under the National Urban Renewal Mission (NURM) with the corporation putting up the balance, Srivastav said.

Under NURM norms, cities eligible for grant have to undertake SWOT analysis, prepare a city development plan (CDP) and city investment plan (CIP).

Based on the SWOT, CDP and CIP, the corporation will also evolve a comprehensive master plan for land use, city transport and water management, Srivastav said. The plan will be evolved in consultation with all the stakeholders including the public, Srivastav said.

However, the modalities of interaction are yet to be worked out, he added. The plans, he said would be in place by the next fiscal.

"We want the GDP of the city to grow, and for this, encouragement of activities which have the highest chances of flourishing in the future is required. That is what the plans will focus on," said Srivastav.