BEST (Brihanmumbai Electric Supply and Transport) is the most recognizable form of public transport in Mumbai with the agency’s iconic buses running across the city and beyond. However, BEST has been under financial deficits over the past few months, and the authorities have decided to rent out existing bus stations and depots while also revising the nominal rent it receives for its properties.
It is said that BEST is currently under a deficit of Rs 90 crore per month, thus leading the company to take the aforementioned steps. Ever since BEST put out tenders for 19 of its locations, the response received in bus stations and depots of areas like Kandivali, Ghatkopar, Bhoiwada, Mulund Check Naka, Colaba, Bandra, and Oshiwara is said to be highly positive.
As per a senior BEST official quoted by Indian Express: “For our property at Andheri bus station, against the quoted price of Rs 113 per sq ft, we have received a quotation for Rs 480 per sq ft. Similarly, for Ghatkopar and Mulund, against quote price of Rs 38 per sq ft, we have received quotes of Rs 51.77 sq ft for each.”
It is said that BEST will collect rent of Rs 25 lakh per month on these properties which amount to Rs 3 crore annually. This idea, as per BEST officials, will allow BEST to increase revenue without hiking ticket prices.
This initiative is barely surprising given that BEST loses around Rs 68 crore on operating costs each month. Although Rs 6 crore of revenue is said to be generated through advertisements, it’s not enough to avoid a loss of Rs 90 crore per month.
“We want to work out ways to ensure that at least 85 per cent of the cost incurred in bus operations is recovered. We are exploring several ways to generate non-fare revenue,” a BEST official added.
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