Mumbai Municipal Corporation Ventures into Hotel Business

Mumbai: The debt-ridden Municipal Corporation has decided to enter the hotel business to increase its revenue. It has decided to build a 131-room luxury hotel on an open plot of land at Dahisar Toll Naka.

The plot at Dahisar spans around 18,600 square meters, and according to the new development plan, it is reserved for a truck terminus. The plan, designed by a consultant hired by the Municipal Corporation, includes a 19-story building with a star-rated hotel. The building will also include 456 bus parking spaces and 1,424 small vehicle parking spaces, as stated by the Corporation.

Summary,
The Mumbai Municipal Corporation has undertaken development projects worth around two lakh crore rupees. To complete these projects on time, the Corporation requires significant funding. However, the municipal treasury currently has limited funds. Recently, the Corporation provided financial assistance of 5,000 crore rupees for the metro rail project, and it also provides regular financial support to the BEST services. To meet the funding needs for ongoing projects, the Corporation will have to take substantial loans. In light of this, the Municipal Corporation has started exploring various sources of revenue, including the decision to build a luxury hotel on the vacant plot that became available after the closure of the local tax checkposts at Dahisar.

This 131-room hotel will also include commercial shops and offices to generate additional revenue through rent, as revealed by a senior official from the Corporation. In Mumbai, five checkposts—Dahisar, LB S Marg Mulund, Eastern Express Highway Mulund, Airoli, and Vashi—have been closed due to the cessation of sales tax collection. The Corporation now plans to construct transport and commercial centers on these vacant lands to increase revenue.