New Delhi: Mumbai will get Rs1,200 crore grant from the Centre to overhaul its 150-year-old storm water drainage system that will help the country’s financial capital to withstand up to 100mm rainfall per hour.
“The Cabinet Committee on Economic Affairs (CCEA) today (12 July) gave its approval for the improvement of storm water drainage system (BRIMSTOWAD) in Mumbai at an estimated cost of Rs1,200.53 crore,” Urban Development Minister Jaipal Reddy told reporters after the CCEA meeting.
He said the grant follows Prime Minister Manmohan Singh’s assurance to the state government that the Centre would provide assistance to deal with floods.
The minister admitted that storm water system in the city was more than 150 years old and was designed for rainfall of only 25mm per hour. Improvement of the system for higher rainfall intensity up to 100mm will reduce the incidence of floods in the city, he added.
The project is to be executed by Municipal Corporation of Greater Mumbai. It will in turn benefit Mumbaikars and save losses of at least Rs1,550 crore per year.
However, any cost escalation will be borne by the Maharashtra government or the Municipal Corporation. The cost of operations, maintenance, rehabilitation and relief to the project-affected families will also be borne by the state.
According to an estimate, insurance companies paid Rs1,000 crore claims in 2005, when the city was hit with floods.