BMC to provide additional funds of ₹400 crore to BEST

On Monday, the Brihanmumbai Municipal Corporation (BMC) introduced a proposal to provide funds worth ₹400 crores to BEST and passed it immediately

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In order to overcome the financial crisis faced by the Brihanmumbai Electric Supply and Transport (BEST), the Brihanmumbai Municipal Corporation (BMC) had allotted funds of ₹1,700 crore to the bus company. However, on September 9, Monday, the civic body introduced another proposal to provide BEST additional funding of ₹400 crore which was passed immediately.

On the other hand, the BMC Standing Committee asked for details of the amount disbursed so far to the bus corporation and also demanded an additional commissioner to keep track of financial aid to the organisation.

Currently, BMC has been giving out ₹100 crore every month to BEST as financial aid and has also committed ₹1,136 crore as assistance to repay its loans. So far, the civic body has given about ₹600 crore to the ailing corporation and BEST has already repaid ₹531 crore so far.

In the meantime, the proposal also pointed out other points, including the BEST not informing the BMC whether its fleet, including wet-leased buses, has become 7,000-strong, which was one of the conditions. The transport wing has also failed to submit reports regarding other BMC suggestions.

While we are considering financial aid to BEST, BMC also needs to take into account its present and future financial conditions,” the proposal read.

Meanwhile, the leader of the Opposition Ravi Raja moved a motion in the meeting which was supported by majority members. He had said that the bus company must provide regular updates to the civic administration along with the standing committee about the amount given to it. 

He added that BMC also requires to have a plan ready for how it will continue to give aid to the undertaking as its own revenue is dwindling.

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