MUMBAI: Dr Bhushan Gagrani, commissioner of the Brihanmumbai Municipal Corporation (BMC) – one of the country’s largest and richest civic bodies — and a Mumbai resident for 25 years reflects on the complexity of running the city, as he dwells on reforms, investment and the upcoming civic elections with Linah Baliga. He speaks candidly about the criticisms faced by BMC, the rationale behind controversial decisions such as partial privatisation of services, infrastructure investments, fiscal discipline and efforts to make the civic body more responsive and transparent.
Excerpts from the interview:
As you’re the face of the BMC, and link between the common man and the institution–how do you see your role and the role of the BMC in the life of a regular Mumbaikar?
I always say that knowingly or unknowingly, intentionally or unintentionally, every Mumbaikar’s life is touched by the BMC in some way or the other. Right from procuring the birth certificate to the death certificate, water, roads, sewage — every corner of life is touched by the BMC.
Perhaps it is the only institution to have such an overwhelming impact on the lives of citizens?
I don’t think there’s any other organisation that covers so many aspects and impacts people’s lives in such a significant way. It’s the only organisation that provides water supply, medical colleges, and even an abattoir at this scale. These services are not necessarily provided by municipal corporations in other metropolitan areas.
Is BMC the only municipal corporation in India that provides so many services under one umbrella, at this scale?
Definitely. You can compare it with Delhi or Kolkata. Delhi has four municipal corporations and a large cantonment area, which changes the structure. In Delhi and Bangalore, water supply is managed by separate bodies such as the Jal Nigam, and they don’t run medical colleges. Many services that are unique to the BMC are not provided by other corporations.
But you also get a lot of flak for it?
We’re used to that, and we don’t take it negatively. I’ve told my team to be open to suggestions and objections, and to always look for scope for improvement.
You’ve lived in this city since 1999. You’ve been a recipient of BMC services and are now running the organisation. Looking at both sides, can you speak as a recipient—and what challenges do you face from inside the BMC?
As a Mumbaikar, I’m proud of our service quality, considering the challenges and pressure of population. But once I started working in the BMC, I realised the complexity of an organisation that provides these kinds of services – they appear simple but are actually very complex. For example, the city generates 7,000 tonnes of garbage per day. That’s a staggering number. Collecting that garbage and taking it to the dumping ground is a huge operational task. When I wasn’t with the BMC, I had no idea the numbers could be so large. It’s only from the inside that you realise how much work is involved.
Is that the reason you’re privatising these operational services for solid waste management?
That’s not the reason, and it’s not complete privatisation either. We want to say that our services will continue regardless—we’re not stepping away from operational work. We’re introducing a second shift for cleaning. A portion of the work will be privatised, which will include new types of compactors and machinery.
Was that the purpose of the ₹4,000 crore tender?
Yes, it’s for five years. It’s a service contract. Small contracts that are weight-based become problematic and don’t qualify as service contracts. We want the contractor to pick up all the garbage generated in a particular ward – this represents a fundamental shift in our approach, both in service quality and in the machinery used.
So when you say it’s fundamentally different, how will it be different operationally?
We are calling it a service contract. We’re not specifying how many tonnes of garbage they need to collect or how much labour they need to deploy.
There was a discussion in the assembly that this method will save ₹160 crore. Is that true?
Not necessarily. It will vary from ward to ward.
So what’s the reason behind wanting to privatise?
Despite our best efforts, we’ve only seen marginal improvement in the Swachh Bharat Abhiyan. We did a lot of brainstorming on the reasons. As we can’t provide certain facilities in slums, we are not including them. But many tourist spots, VIP areas, and heritage sites are still not clean. We have a second shift for cleaning only in a few wards such as A-Ward in Fort. Our BMC shift typically ends in the afternoon. So we’ll introduce a second shift using additional manpower.
What are some of the complex services the BMC provides?
We own seven dams. We ensure Mumbaikars get water, unlike many other cities. We are blessed with a world-class distribution system, and our water is treated at the Bhandup treatment plant.
So, in a sense, BMC is a government in itself?
Yes, it’s a government within a government.
What are the three things needed for better efficiency and improvement of the city, what would they be?
The first is to focus on urban mobility. It is a complex issue in Mumbai because multiple agencies are involved: BMC, traffic police, MMRDA, MMRCL. All of them are working together and shaping things up well. Urban mobility is not just about transportation or saving time. It also brings balance to the real estate market. Affordable housing increases when areas become more accessible, leading to socio-economic equilibrium. So, urban mobility is critical not only for saving time but also improving options for affordable housing and achieving socio-economic balance.
However, results don’t come immediately. We have to build the infrastructure first. For example, we’ve built the Atal Setu, but its full impact—connecting the city with the new airport–will take at least four to five years to show.
Other than urban mobility, what else do you want to change in the city?
The BMC is already working on providing 24×7 water supply for all. It’s not possible to implement this across the entire city at once, but it can be done in phases. Our distribution network is good, but we need to create a substantial additional water stock. So, we are considering building new dams. We also have desalination and sewage treatment plant projects where recycled water will be used for tertiary purposes. All in all, Mumbai could have an additional 3,000 MLD of water available in the next three to four years.
Is that the projected water requirement for the next few years?
The requirement may not be that high for the island city, as the population has stabilised. But the standard of living and consumption are going up. So even with the same population, water usage is increasing. We’re currently capped at 150 litres per person per day, and even then, we do not yet have a 24×7 water supply. However, a few wards are getting 24×7 water due to situational advantages, such as their proximity to the Bhandup treatment plant.
What else would you like to change in the city?
We have multiple plans to curb air pollution in Mumbai. Vehicular emissions and construction activities are major contributors. Measures such as phasing out old vehicles, enforcing PUCs and strict guidelines are being implemented. We’ve developed a robust mechanism for monitoring air pollution at the local level. It’s now mandatory for every construction site to install air quality monitors with public displays. Over 1,000 construction sites have already installed these monitors. The results will be more visible in October, when AQI levels typically rise. We issued stop-work notices last year as well. There’s no shortage of guidelines—the real challenge is execution.
Road complaints, especially about potholes, are where you get the most criticism. Is it an intractable problem?
The concretisation work began some time ago, and over the past five years, wherever roads have been concretised, we’ve received positive feedback, no potholes on those roads. The solution is to concretise more roads, especially those wider than nine metres. In many suburbs, pothole complaints have drastically reduced due to road concreting.
Are there serious, money-guzzling projects?
Of course. We’ve made capital investments in the range of ₹35,000 to ₹40,000 crore.
Does that worry you, given your strong focus on fiscal discipline?
It’s not going to cause any cash flow or liquidity issues for the next two to three years. But many of these projects will be completed around the same time, and when the final bills start coming in over the next three years, we’ll need to explore ways to strengthen our fiscal resources. Instead of taking on too many projects, we’ll focus on a few important ones.
How do you see things playing out in the next five years?
Basically, the city has a huge capacity for income generation. We must avoid spending on non-productive projects.
Which areas have you cut down on expenditure?
Many beautification projects and others with escalating costs have been stopped. Many projects are halted when departments get the message that cost escalations won’t be approved. For example, MMRDA is constructing the Orange Gate tunnel. We requested the government to cancel the proposed flyover there. Similarly, we cancelled a proposal for concretising service roads on the Eastern Express Highway. A lot of unnecessary projects were stopped at the proposal stage, and some were cancelled due to unjustified cost escalations. I’ve instructed my team to be selective in taking up capital works. When roads are being concretised, I ask about the savings on pothole repairs. This year alone, we’ve saved ₹150 crore on pothole-related costs. I don’t approve budgets lightly, and once engineers realise their budgets won’t be approved easily, their cost estimates also come down. That’s how it works in any organisation.
What’s your take on making BEST sustainable?
BMC continues to support BEST financially, providing ₹1,000–2,000 crore every year. I’m not an expert in public transport, so I won’t comment on operational issues. But I limit myself to providing budgetary support, and that cannot be unlimited. There has to be some effort from their end to set things right. Over the past 7–8 years, BMC has given over ₹10,000 crore. Considering our challenges, we can only afford ₹1,000–1,500 crore going forward.
There’s a lot of talk about BMC dipping into its reserves and fixed deposits?
I always say one shouldn’t be overly sensitive about fixed deposits. The interest we earn is around 6.5%, and inflation is about 4.5–5%, so the real return is just 1.5–2%. Investing in infrastructure may not give direct returns to BMC, but it contributes to the city’s GDP and economic activity. That’s when BMC has to balance its own finances with the city’s needs. As long as we don’t default on contracts, salaries, or wages, there’s no crisis.
Are you looking at rationalising staff in the next decade?
That’s always a challenge. There are permanent BMC staff and contractual workers, who constantly seek permanent jobs. This is a chronic issue across governments, not just in BMC. There’s no perfect solution to balance the two.
Do you think reducing staff is necessary at this point?
Some jobs are seasonal—such as pest control during pre-monsoon and monsoon periods. You can’t recruit 1,000 people just for that. These roles must remain contractual. The private sector can handle many semi-skilled and skilled roles like security. But for critical areas such as water supply schemes and water treatment plants, we need permanent staff. In other areas, jobs can be outsourced.
Are you generating revenue from auctioning estate department plots?
We’ve been allotted SRA schemes on municipal plots from which we expect revenue. All SRA schemes are technically under the SRA’s domain, but last year, due to delays and defaults by developers, the government allocated some schemes to agencies such as MMRDA, MSRDC and BMC. BMC was given 62 schemes, of which six were withdrawn, so we’re managing 56. We act as the SRA authority for these and benefit from premiums.
Secondly, we’ve identified some plots for auction, aiming to raise ₹3,000- ₹4,000 crore. We’re also expanding the property tax net to include commercial establishments in slums, generating a few hundred crore. We’re looking at all legitimate ways to increase revenue.
This is an election year, with civic polls scheduled. You’ll be under maximum political scrutiny. How are you handling the pressure?
We don’t have a special plan for it. Our staff is politically aware, having worked with the elected body for years. We’re being extra careful with file processes and documentation.
How do you plan to bridge the gap between people and administrative representatives in the absence of corporators–any plans to revive ALMs and involve citizens?
Getting consistent feedback is a challenge in this kind of an administrative setup. We’re in touch with ALMs, but interactions remain limited. However, we’ve built a decent presence on social media.
Where do you think corporators add value to the system?
Many senior people have told me that corporators often help resolve trivial issues at the ward level. They not only give feedback but also suggest workable solutions.
One of Mumbai’s strengths is its public hospitals. There’s been discussion about public-private partnerships. Are you in favour of this or concerned?
It’s a grey area. Despite having good infrastructure, bed occupancy is only 60%. There is disproportionate usage in certain wards, especially in gynaecology, general medicine, and ICUs, which create an image problem. But overall, occupancy doesn’t justify large-scale investments. So, our approach is to privatise only the additional capacity we create, without touching the existing infrastructure.
We’re investing ₹8,000 crore annually in upgrades. But infrastructure alone won’t solve the problem, we need trained doctors, paramedics, and teaching staff. That’s the real challenge. Our healthcare pyramid is inverted: primary healthcare has shrunk, and tertiary care has expanded. There’s no shortage of super-specialty hospitals in Mumbai, so why should BMC continue pouring money into tertiary care?
If we’re constructing one hospital tower, we can build another tower for PPP. That’s the approach, we’ll focus more on strengthening primary healthcare.
What prompted your interest in supporting the film industry?
All major global cities such as London and Zurich support the film industry through infrastructure, facilitation and permissions. But here, we’re disconnected. Despite being home to Bollywood and a thriving entertainment industry, BMC does little to support it. In fact, we often become a hurdle with our complicated permission processes. We should, at the very least, create a supportive ecosystem for the industry.
Mumbai is home to many billionaires and celebrities, which is a major charm of the city. Does BMC work closely with VIP residences?
There is a lot of informal communication regarding their contribution to the city. Some private foundations and NGOs are in touch with us.





