BMC Allocates ₹1,000 Crore for BEST Bus Services in 2025-26 Budget Amid Financial Challenges
The Brihanmumbai Municipal Corporation (BMC) has allocated a substantial ₹1,000 crore to support the Brihanmumbai Electric Supply and Transport (BEST) undertaking. BEST, which operates as Mumbai’s second-largest public transport system, plays a vital role in serving the city’s commuters—approximately 30 lakh people every day—yet faces significant financial hurdles. This allocation is designed to stabilise the service amid ongoing financial difficulties.
The ₹1,000 crore provision will go a long way in addressing the critical needs of BEST. The corporation, which operates a fleet of around 3,000 buses, is financially strained, with accumulated losses totalling ₹9,500 crore. The funds will be utilised for various essential purposes including infrastructure development, capital equipment procurement, loan repayments, daily operations, and employee-related expenses. Additionally, the funds will help with the continuation of projects like the Intelligent Transport Management System (ITMS), ensuring that Mumbai’s buses remain modern and efficient. A significant portion of the BMC’s contribution will also aid in the procurement of 2,000 electric buses for the city, as per the state government’s directives. The allocated ₹128.65 crore will cover the BMC’s 5% share of this initiative, a crucial step towards reducing Mumbai’s carbon footprint. However, it remains unclear if this amount is part of the ₹1,000 crore grant or a separate allocation.
This move is part of a larger drive towards modernising Mumbai’s public transport fleet and making it more sustainable. With Mumbai’s increasing population and rising urbanisation, there has been growing pressure on the city’s public transport infrastructure. The shift to electric buses aligns with global trends favouring green energy and sustainable urban development. By introducing electric buses, BMC is also addressing pollution and aiming to make public transport more environmentally friendly. Over the years, the BMC has offered substantial financial assistance to BEST, and this year’s provision is part of that ongoing support. Since 2012-13, the BMC has contributed over ₹11,300 crore to BEST to keep its operations afloat. Despite these efforts, BEST continues to face challenges, mainly due to mounting losses and increasing operational costs. The latest grant aims to help the transport undertaking with immediate financial relief, especially as the city’s bus services remain crucial for commuters.
Additionally, BEST’s financial situation is further complicated by the need to pay Diwali bonuses, pensioner dues, and electricity bills, alongside the capital required for purchasing buses and equipment. The BMC’s recognition of these needs in the budget reflects a pragmatic approach to ensuring that the city’s public transport services can continue to function smoothly without overburdening Mumbai’s taxpayers. In another boost for BEST’s modernisation efforts, the 15th Finance Commission has sanctioned ₹992 crore for the purchase of electric buses. While ₹493.38 crore has already been disbursed, the remaining ₹498.62 crore is expected to be provided once the disbursement process is completed. This additional financial support is expected to aid BEST in further strengthening its fleet of eco-friendly buses and gradually replace the older, less efficient vehicles.
BMC’s commitment to improving Mumbai’s public transport system is also evident in its plans for continued infrastructure improvements. The funds allocated will support ongoing development projects that aim to make bus services more reliable, accessible, and sustainable for the city’s growing population. As Mumbai grapples with the challenges of urbanisation, the BMC’s decision to allocate ₹1,000 crore to BEST is a timely and crucial step towards maintaining the city’s public transport system. With the funds set aside for infrastructure, electric buses, and daily operations, BEST is positioned to continue its vital role in serving millions of Mumbaikars. These efforts not only ensure the longevity of the city’s bus services but also contribute to Mumbai’s shift towards a more sustainable future. The financial support from the BMC will undoubtedly help in bridging the gaps in BEST’s finances and offer a smoother ride to the city’s commuters.
