The civic standing committee of the Brihanmumbai Municipal Corporation (BMC) approved a proposal on Thursday to disburse Rs 1,000 crore to the Brihanmumbai Electric Supply and Transport (BEST) undertaking. The proposal had been held back during an earlier meeting on June 12.
Conditions for Approval
Committee members had previously demanded that BEST depute a representative to provide detailed information on its financial condition. In response, BEST appointed a representative, following which the proposal received approval.
Historical Financial Assistance
According to the BMC, a total of Rs 12,312 crore has been provided to BEST as financial assistance between the fiscal years 2012-13 and 2025-26. BEST Chief Accounts Officer and Financial Adviser Prabhakar Sawant submitted a comprehensive statement on the undertaking’s finances.
Committee Displeasure
Standing committee members expressed dissatisfaction over the absence of the BEST General Manager at the meeting. Committee Chairperson Prabhakar Shinde has called for a joint meeting between General Manager Sonia Sethi and senior BMC officials at a later date.
Utilisation of Funds
According to Sawant, 70% of the aid will be used to clear pending employee dues, while the remaining 30% will serve as working capital. Of the Rs 1,000 crore provided to BEST in 2025-26, Rs 606 crore was spent on gratuity and employee benefits, including Rs 112 crore towards pending Covid allowances.
For the fiscal year 2026-27, Rs 1,000 crore was earmarked, of which Rs 500 crore was disbursed to BEST on June 6. Out of this amount, Rs 350 crore has been allocated for gratuity benefits for retired employees.
