BEST seeks Rs 3,419 cr from Mumbai civic body to procure new buses

The Brihanmumbai Electric Supply and Transport (BEST) undertaking has sought Rs 3,419 crore from the city civic body to procure 2,237 buses, a letter by the transport authority revealed.

The BEST's new general manager Vijay Singhal last month wrote to Brihanmumbai Municipal Corporation (BMC) commissioner Iqbal Singh Chahal seeking Rs 3,419 crore financial assistance to purchase 2,237 buses in a phased manner.

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

Highlighting the need for procuring 2,237 new buses, the transport body stated that it scrapped 1,696 of its buses before the end of March and 541 more are expected to be removed this financial year.

Under the Capital Work Budget, a provision of Rs 2,58,391.25 lakh was made in 2022-23 (budget) for 1,696 electric buses and Rs 83,552.75 lakh is made in 2023-24 (budget) for 541 electric buses," the letter stated.

The BEST's fleet has come down to 3,100 from around 3,500 buses a few years ago, officials said.

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

Former member of BEST committee and labour union leader Sunil Ganachary blamed the civic body for the BEST's financial troubles.

"The BEST's income decreased as the BMC asked it to slash ticket prices. Isn't it the civic body's moral responsibility to pay the difference in income and expenditure? The BMC had given a written assurance to fill the viability gap, but it is not paying the same," Ganachary said.

He further said the BEST had sought Rs 6,500 crore from the BMC, but it has paid just Rs 800 crore, which is not even 15 per cent.

As per the Mumbai Municipal Act 1888, it is the BMC's responsibility to provide transport services and power to the citizens and hence, it is obligated to provide financial assistance to the BEST, said Suhas Nalawade, labour union leader and former BEST official.

"The civic body should start the process of merging the BEST with it and make it part and parcel of the civic body like the hydraulic and storm water drain departments," he said.

Despite repeated attempts, the BMC chief did not respond to the query about the letter for financial assistance from the BEST.

Notably, in a press conference conducted on July 2, the BMC chief had claimed that the civic body has paid Rs 2,567 crore to the BEST towards payment of gratuity and pension dues of its retired employees.