BEST needs Rs 10,000 crore over 5 years to revive finances, upgrade bus services

BEST, Mumbai’s road transport service provider, is facing one of its worst financial crises. It has a loan burden of Rs 2,500 crore and cumulative losses of more than Rs ,800 crore.

The Brihanmumbai Electric Supply and Transport (BEST) will need Rs10,000 crore over the next five years to revive its finances and upgrade its bus services, the general manager of the undertaking, Surendrakumar Bagade, told its policy-making body on Monday, in the first meeting after the recent nine-day strike.

The BEST staff strike between January 8 and January 16 was the longest in the history of the transport undertaking, leading to a Rs19.77crore loss of ticketing revenue. (HT Photo)

The road transport service provider is facing one of its worst financial crises. It has a loan burden of Rs 2,500 crore and cumulative losses of more than Rs ,800 crore. BEST has been unable to pay the monthly salaries and retirement benefits to its staff. While the plan has been earlier discussed with the mayor, the undertaking is unlikely to get such a huge amount required for the turnaround.

Replying to an adjournment motion moved by senior Congress member on the panel and Opposition leader in BMC Ravi Raja, Bagde said they will submit the plan to the high court-appointed mediator, retired HC judge F Rebello. “We stopped collecting transport deficit loss revenue (TDLR), the transport cess levied on power consumers in the island city, since September 2017. Before that, we collected Rs 2,500 crore in TDLR, but that too was used to balance the transport loss,” said Bagde, adding, “The undertaking plans to add 1,000 buses to its fleet, including 80 e-buses and 450 A/C and non A/C buses.”

The BEST staff strike between January 8 and January 16 was the longest in the history of the transport undertaking, leading to a Rs19.77crore loss of ticketing revenue. During the strike, 17 buses were damaged in 10 incidents of stone pelting, costing the authority Rs 37,300. On January 16, BEST earned Rs 26.05 lakh when the buses hit the roads.

Sunil Ganacharya, a senior member of Bharatiya Janata Party, suggested the civic body should give 3% of the total Rs 18,000-crore collected in property tax to BEST. “The amount will come to Rs 540 crore, which would ensure BEST won’t have to look for money elsewhere,” said Ganacharya, criticising Bagde for failing to handle the strike well.

Raja said, “Passengers have lost faith in the general manager and the administration. If the administration would have given the bonus announced in a committee meeting, the strike would not have occurred. He should take the responsibility.” He also held the ruling Sena equally responsible for not doing enough.

BEST committee members also took a dig at Bagde over the revival plan given by civic chief Ajoy Mehta, which could have saved the undertaking around Rs 700 crore. The plan, now on hold, included several reforms such as hiring private buses, reducing loss-making routes, freezing posts, and several others.