The Brihanmumbai Municipal Corporation (BMC) has proposed a financial grant of Rs 1,000 crore to the Brihanmumbai Electric Supply and Transport (BEST) Undertaking in its Budget Estimates (B.E.) for the financial year 2025-26. This allocation comes despite BMC's own pressing financial commitments toward ongoing infrastructure projects and other essential objectives.
Since 2012-13, BMC has extended financial assistance totaling Rs 11,304.59 crore to BEST until January 2025. The new Rs 1,000 crore provision aims to address various operational and capital expenditures, including infrastructural development, capital equipment procurement, loan repayment, acquisition of new buses through a wet lease model, employee pay revisions, day-to-day operational costs, the Intelligent Transport Management System (ITMS) project, Diwali bonuses, pensioners’ gratuities, and electricity dues.
Additionally, the grant includes Rs 128.65 crore as BMC’s 5% share for the procurement and deployment of 2,000 electric buses for Mumbai, in accordance with the directives of the Maharashtra State Government.
Boost for Electric Mobility
In a significant push toward sustainable urban transport, the 15th Finance Commission has sanctioned Rs 992 crore for the purchase of electric buses. Of this, Rs 493.38 crore has already been disbursed to BEST, while the remaining Rs 498.62 crore will be transferred upon receipt from the Finance Commission. This initiative aligns with Mumbai’s long-term goal of transitioning to an eco-friendly public transport system.
Mumbai's public transportation backbone, BEST, has been grappling with financial challenges in recent years. Despite serving nearly 35 lakh passengers daily, the BEST fleet is dwindling, with the number of buses reduced to below 3,000. Notably, nearly two-thirds of these buses are operated on wet lease agreements.
