Beleaguered BEST seeks funds from BMC to buy more buses

A letter has been written by the Undertaking seeking financial assistance as their fleet is down to 3,100 buses. The BEST already has losses of over ₹6,000 crore. BEST Undertaking is procuring these buses as it has to maintain a of 3,337 buses as per a memorandum of understanding (MoU) signed with BEST Workers Union.

Mumbai: The Brihanmumbai Electric Supply and Transport (BEST) has sought ₹3,419 crore from the Brihanmumbai Municipal Corporation (BMC) to procure 2,237 buses.

Mumbai, India - Jan. 7, 2019: A grill as put on best bus for protection at Pratiksha Nagar Best Depot in Mumbai, India, on Monday, January 7, 2019. (Photo by Kunal Patil/Hindustan Times) (Kunal Patil/HT Photo)

A letter has been written by the Undertaking seeking financial assistance as their fleet is down to 3,100 buses. The BEST already has losses of over ₹6,000 crore.

BEST Undertaking is procuring these buses as it has to maintain a of 3,337 buses as per a memorandum of understanding (MoU) signed with BEST Workers Union.

In a letter written on June 16 to Iqbal Chahal, BMC commissioner, Vijay Singhal, general manager, BEST, sought funding for purchasing buses in a phased manner.

The letter stated, “As on March 31, a total of 1,696 buses were scrapped and 541 more buses will be scrapped in FY 2023-24. So, the total owned fleet will be 1,100 buses after the scrapping of 2,237 buses.”

BEST stated, “It is requested to provide financial assistance of ₹3,419.44 crore to BEST Undertaking to procure 2,237 buses in phased manner.”

The transport body in the letter stated that as per clause no 3 in a MoU signed with BEST Workers Union on June 11, 2019, it is necessary for the Undertaking to maintain 3,337 buses in its fleet.

Under the Capital Work Budget, a provision of ₹2,58,391.25 lakh was made in 2022-23 (budget) for 1,696 electric buses and ₹83,552.75 lakh is made in 2023-24 (budget) for 541 electric buses. The BEST’s fleet has come down to 3,100 from around 3,500 buses a few years ago.

“Back in 2018, the BEST was earning ₹4 crore each day but then they decided to bring the ticket fares down to ₹5. This led to a sudden drop of ₹1-1.5 crore per day in revenue.

“They have been operating wet lease buses which are in majority now. As per the contract with the BEST unions, the administration has to maintain its owned fleet at 3,337 buses,” said Suhas Samant, former BEST Committee member and BEST union leader.

According to labour union leaders, the BEST’s financial condition is delicate, as it suffers monthly operating losses of ₹250 crore in absence of the assured financial assistance from the BMC.

“The BEST already has accumulated losses of ₹6,000 crore. The civic body is already funding each month and if more financial assistance is provided then it will deteriorate its own financial condition,” said Ravi Raja, ex BEST Committee member.