BMC budget: Rs1,500-crore fillip for cash-strapped BEST undertaking

In a fillip to the troubled Brihanmumbai Electricity Supply and Transport (BEST), the Brihanmumbai Municipal Corporation (BMC) has made a budgetary allocation of

In a fillip to the troubled Brihanmumbai Electricity Supply and Transport (BEST), the Brihanmumbai Municipal Corporation (BMC) has made a budgetary allocation of ₹1,500 crore to help revive the authority that runs buses and handles electricity distribution in the island city. The BEST, an undertaking of the BMC, is facing financial crisis due to heavy debts and losses in its transport wing.

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While allocating ₹1,500 crore, the civic body has imposed strict conditions on the transport body to improve performance with reduction of operational cost per kilometer. BEST is also expected to increase revenue through better management of its leased properties and ensure recovery of funds.

Municipal commissioner Praveen Pardeshi, in his budget speech said, “These funds shall be used for repayment of loans, procurement of new buses under wet lease to fulfil financial obligation arising from wage agreement, day-to-day expenditure and implementation of ITMS project, etc.” Pardeshi also suggested that to ensure financial sustainability, operating cost per km of buses has to be reduced by 10-15%. He said that BEST fleet did not cope with public requirements over the past few years, which led to a growth in private vehicles.

BEST chairman Anil Patankar welcomed the move. He said, “The operational cost came down after induction of buses on wet lease. Many projects in the pipeline will generate revenue and we are working on it.”

Currently, the cost of operational of BEST is ₹130 per km and after the induction of new buses under wet lease, the cost has come down to ₹95 per km.

The civic body had given a grant of ₹1941.30 crore in 2019-20.

Criticising the budgetary allocation, BEST committee member Anil Kawathankar said, “Considering the financial condition of the undertaking, ₹1,500 crore is not enough. To reduce the operational cost, the civic body should have made available separate lanes for our buses. Most buses get stuck in heavy traffic which increase our operational costs.”

BEST will also undertake Hydro Power Generation on Middle Vaitarna dam. The project, which has been approved by the state government will produce 25 megawatt of power.

The BMC has proposed to offer 50% fare concession to senior citizens travelling in non-AC buses, with an allocation of ₹3 crore. The civic body also proposed 100% concession in fares to the blind and differently-abled in non-AC buses.