The Brihanmumbai Municipal Corporation (BMC) has proposed a detailed 15-point revival plan for the Brihanmumbai Electric Supply and Transport (BEST) Undertaking after the public utility projected a loss of INR 2,439 crore for the financial year 2026-27.
The plan focuses on reducing losses, increasing revenue, improving efficiency, and improving both the transport and electricity supply divisions of BEST. The civic body issued the reform directions after BEST sought additional financial support. A draft response was shared by members of the BEST committee on Monday, May 18.
The BMC’s plan will modernise the bus transport system and improve its electricity distribution network. The civic body has also asked to create new revenue sources and stop financial leakages.
Under the electricity supply division, the BMC has suggested these reforms:
* Reforming its capital expenditure planning and make investments in substations and reception centres more carefully to reduce costs.
* Setting clear targets to enter the power generation sector.
* Setting clear targets to enter the power generation sector.
* Preparing a strategy to stop consumers from shifting to other electricity providers.
* Increasing the number of commercial electricity users.
* Exploring solar power generation opportunities as part of its long-term energy plans.
* Acting strictly against electricity theft and faulty meters and deploy a special vigilance squad to prevent power theft and meter tampering.
For the transport division, the BMC has suggested these reforms:
* Better use of drivers, conductors, and transport staff to improve revenue generation.
* Earning revenue through basement parking spaces at bus depots and garages and monetising vacant and unused land parcels owned by the undertaking.
* Revising the advertising policy to increase earnings from advertisements has also been recommended.
* Formation of a transport expert committee for the overall development of BEST’s transport services.
* Setting up electric vehicle charging stations on unused BEST land to generate additional revenue.
* Formation of a dedicated committee that would actively monitor rising yearly deficits.
* Reviewing loss-making bus routes and make them financially sustainable.
BEST has already formed an expert group to improve urban transport systems. The undertaking is also continuing work on route rationalisation and bus parking facilities.
Apart from this, the civic body directed BEST to start a strict recovery drive for pending dues from large businesses, private firms, construction companies, and government and semi-government departments. The report also proposed setting up a separate recovery department for unpaid bills.
According to the undertaking, revenue from non-fare sources rose sharply from INR 293 crore in 2024-25 to INR 388 crore in 2025-26. The other revenue-generating measures proposed by the BMC include changes in advertising policy, monetisation of vacant land, and recovery of outstanding dues.
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