The Brihanmumbai Municipal Corporation (BMC) standing committee on Friday deferred a proposal to disburse Rs 1,000 crore to the financially troubled Brihanmumbai Electric Supply and Transport (BEST) undertaking, following concerns raised by members about fund utilisation, shrinking bus fleets, wet-lease operations, and unpaid dues. The committee instead demanded that BEST depute a representative to provide detailed information on its financial condition.
BMC's Financial Assistance to BEST
According to the BMC, a total of Rs 12,312 crore has been provided to BEST as financial assistance between 2012-13 and 2025-26. However, committee members pointed to a reduction in the number of buses deployed on roads, recent bus accidents, alleged mismanagement in the deployment of leased buses, and non-payment of retirement benefits to BEST employees. Members also noted that accidents are being caused by drivers recruited on a temporary basis.
Committee Demands Explanation
Standing committee chairman Prabhakar Shinde directed the BMC administration to ensure that a representative from BEST appears before the panel to explain how the undertaking has utilised the financial assistance provided by BMC so far, as well as the measures being undertaken to improve its condition. Shinde also mentioned that the chief minister held a meeting on June 5 to discuss ways to revive BEST from its current crisis.
NCP member Sayeeda Khan said the BMC has been providing assistance to BEST for the last 14 years and that there is a need to ascertain how the money is being spent. MNS member Yashwant Killedar highlighted deficiencies in both BEST's transport and electricity supply services. He alleged that drivers are deployed without proper training and that faulty wet-lease vehicles are being operated, leading to accidents. He further claimed that outdated power equipment is causing frequent power disruptions across the city, including in Dadar and Worli.
BMC's Proposal for FY 2026-27
The BMC's proposal stated that considering the financial condition of BEST and the importance of public transport, a provision of Rs 1,000 crore has been made in the budget estimates for the financial year 2026-27 to assist the undertaking in improving its operational system. The provision also includes an ex gratia grant for BEST employees for Diwali.
The proposal further noted that the BMC has provided substantial financial assistance to BEST, but its deficit has continued to increase. It is necessary for the BEST administration to make the undertaking more passenger-centric and efficient while reducing its deficit. There is an urgent need for the BEST administration to make concerted efforts and take immediate steps to restore the undertaking to a vibrant state.
Property Tax Deduction
As BEST owes about Rs 94 crore in property tax, the amount will be deducted from the Rs 1,000 crore being provided by the BMC, and the remaining amount will be released in phases, subject to the availability of funds, the proposal stated.
