It can use funds for equipment, loan repayment, renting new buses, daily expenses, bonuses, gratuity for staff
BEST has projected a deficit of about R1,601.80 crore in 2024-25. FILE PIC
The Brihanmumbai Electric Supply and Transport (BEST) undertaking has expressed the need for Rs 3,000 crore from the Brihanmumbai Municipal Corporation, but the latter has set aside Rs 800 crore for it in this financial year.
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While presenting its budget for 2024-25 to the civic body in December 2023, the undertaking demanded Rs 3,000 crore in financial aid. This money would mainly be used to procure new buses. Municipal Commissioner Bhushan Gagrani told mid-day, “We have made provision of Rs 800 crore for the BEST in the civic budget of 2024-25. We already handed over Rs 530. Now we are giving Rs 132 crore as per our provision.”
According to the civic budget document, BEST can use this money for capital equipment, repayment of loans, renting new buses, day-to-day expenses, Diwali bonuses and gratuity for employees. BEST has projected a deficit of about Rs 1,601.80 crore in 2024-25. In 2016-17, the BMC decided to give financial aid to BEST to buy new buses, pay electricity charges and dues to staff. Since then, the civic body has already paid R8,500 crore to the undertaking in a phased manner.
Currently, the BEST has a fleet of 1,095 buses while 2,022 buses are on wet lease. As per a 2016-17 agreement between unions, the undertaking’s administration and the BMC, BEST should maintain a fleet of at least 3,337 buses. According to the records, BEST has dues totalling around Rs 450 crore that are owed to retired employees (provident fund and gratuity). The company from which BEST procures electricity is also owed money.
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