Mumbai: The financially struggling Brihanmumbai Electricity Supply and Transport (BEST) Undertaking has approached the Brihanmumbai Municipal Corporation (BMC) for a substantial financial aid of ₹1,400 crore to address its mounting fiscal challenges. However, the BMC, serving as BEST’s parent organisation, has turned down the request, prompting discussions about potential revenue generation strategies, including a possible bus fare hike.
BEST, a century-old institution, faces several operational hurdles, including delayed delivery of new bus orders and recurrent threats of protests from staff of wet lease bus operators. Its most pressing issue, however, remains its financial instability. With cumulative losses piling up and accrued loans reaching a staggering ₹6,000 crore, the undertaking is also burdened with a requirement of ₹600 crore for gratuity and pension payments to retired employees.
In the 2024-25 budget, the BMC had allocated ₹800 crore to BEST to support infrastructure enhancement, procurement of new equipment, loan repayment, wet lease of new buses, implementation of the integrated traffic management system project, payment of Diwali bonuses, and coverage of electricity dues and day-to-day expenses.
A senior BEST official revealed, “We have sought financial aid worth ₹1,400 crore from the civic body over and above what was allocated in the budget.”
During a recent meeting between the BMC and BEST, the municipal corporation advised BEST to explore alternative revenue generation methods. “We require additional funds because historically, higher amounts were allocated for BEST. However, we have been asked to identify revenue generation options. A hike in bus fares is a likely solution that we need to consider,” noted the BEST official.
In March this year, BEST implemented a significant price hike for daily, weekly, and monthly bus passes, with the steepest increases applied to monthly passes, especially those covering a higher number of trips.
Besides considering a fare hike, BEST is exploring the redevelopment of its bus depots as a means to boost revenues. Depots in Dindoshi, Wadala, and Deonar have been shortlisted for redevelopment. The International Finance Corporation (IFC) is negotiating with BEST to facilitate this redevelopment through a public-private partnership, with the IFC handling architectural designs, development plans, and detailed cost estimates.
Despite these measures, BEST employees and civil society activists argue that the BMC should intervene to improve the transport utility’s financial health. A representative from the BEST Workers’ Union stated, “We have demanded that the administration ensure a fleet of 3,337 buses and integrate the budget with the BMC for better financial stability.”
The ongoing discussions highlight the critical financial situation of BEST and the need for innovative solutions to ensure its sustainability and continued service to Mumbai’s residents.
