BMC Unveils Rs 3,938 crore budget, Massive push for water, sewage and lake rejuvenation. Mayor Malti Rai presents roadmap for FY 2026-27 with no new taxes; Rs 1,050 crore earmarked for sewage network expansion
Mayor :
Malti Rai on Monday presented a Rs 3,938.45 crore budget for the Bhopal Municipal Corporation (BMC) for the financial year 2026-27. The budget focuses heavily on strengthening the city’s water supply, expanding sewage networks and urban infrastructure upgrades. While the Mayor maintained a ‘no new tax’ stance for the general public, the budget proposes a 13% increase in commercial sewage tax and an estimated deficit of Rs 108 crore.
Water and Sewage Infrastructure Overhaul: A significant portion of the outlay is dedicated to the Amrut 2.0 scheme to modernise the city’s utility network. Mayor Malti Rai stated that the corporation is currently executing works worth Rs 582 crore to install 36 overhead tanks, four filtration plants, and a 600-km pipeline network.
Additionally, Rs 1,050 crore has been allocated to expand the sewage network to cover 70% of the city, aiming to increase treatment capacity to 80%. The plan also includes replacing bulk connections with individual tap connections in 829 colonies to ensure better distribution.
Dedicated Funds for Upper Lake Beautification: In a major ecological move, the BMC has allocated substantial funds specifically for the city’s primary water body.
An amount of Rs 14.9 crore has been sanctioned for the Upper Lake, also known as Bada Talab, to focus on its beautification and protection from encroachment. This initiative is part of a broader strategy to preserve the lifeline of Bhopal and enhance its aesthetic appeal for residents and tourists alike.
Redevelopment of Lower Lake and Surrounding Areas: The Lower Lake is set for a significant transformation under the CM Infrastructure Scheme. With a dedicated Rs 7 crore outlay, the project aims to redevelop the lakefront and improve the surrounding infrastructure.
This effort is designed to integrate the historic water body into the modern urban landscape while ensuring that its environmental integrity is maintained through systematic civil works.
Conservation of Kaliasot River and Shahpura Lake: Substantial financial provisions have been made for the Kaliasot River and Shahpura Lake, with allocations of Rs 34 crore and Rs 9 crore respectively.
These funds will be utilised for conservation activities and the construction of specialised immersion ponds to prevent the direct dumping of waste during festivals. These measures are expected to significantly reduce pollution levels and protect the local aquatic ecosystem from further degradation.
Expansion of Housing and Social Welfare Schemes : Under the Pradhan Mantri Awas Yojana (PMAY), the BMC plans to construct 1,856 new houses in Rajendra Nagar and Deepdi at an estimated cost of Rs 400 crore. Notably, the Corporation has sought land near railway stations to build dedicated housing for porters to ease their commuting challenges.
For municipal employees, the incentive for meritorious children has been increased to Rs 15,000, and a new fund has been established to support staff injured on duty.
Strategic Traffic Reforms and Commercial Hubs: To address urban congestion, the BMC plans to relocate the Navbahar vegetable market and the Itwara meat market to more organised locations. A new commercial hub, modeled after the TT Nagar Stadium Market, will be developed to provide better facilities for traders. Key traffic reforms include Rs 6.9 crore for eliminating ‘black spots’, Rs 30 crore for road maintenance, and another Rs 30 crore for street lighting, alongside moving the old city transport hub to Kokta.
Cultural Initiatives and National Cleanliness Goals: The budget includes Rs 3 crore for a Jheel Mahotsav in memory of Rani Kamalapati and the construction of a museum dedicated to Guru Teg Bahadur near Roshanpura. Additionally, Rs 84 crore has been set aside for sanitation efforts under Swachh Survekshan.
As Bhopal is currently the nation’s second cleanest city, these funds are aimed at securing the top spot in the
upcoming national cleanliness rankings through enhanced waste management.