Mumbai, June 25: Facing mounting financial pressure, the Brihanmumbai Electric Supply and Transport (BEST) Undertaking has sought Rs 3,941 crore from the Brihanmumbai Municipal Corporation (BMC) to clear pending retirement dues of former employees and bridge losses in its bus transport operations.
Addressing the Standing Committee on Thursday, BEST General Manager Soniya Sethi said the financial support was crucial for meeting the undertaking's statutory obligations, including retirement benefits, and ensuring the continued operation of Mumbai's public bus transport network.
BEST Seeks Financial Support
BEST has received a total grant of Rs 12,805 crore from the BMC over the past 15 years. Following demands from Standing Committee members for clarity on how these funds were utilised and why additional financial assistance is required, Sethi made a detailed presentation before the committee on Thursday.
She said BEST began receiving financial support from the BMC in 2012-13 and 2013-14, when it was granted Rs 1,600 crore. The subsidy amount gradually increased over the years and was primarily used to meet employee-related liabilities.
Sethi noted that over the past five years, BEST's bus fleet has largely transitioned from owned vehicles to buses operated on a wet-lease model.
According to the presentation, BEST currently owns only 249 buses, while around 2,500 buses are operated on hire. The undertaking aims to expand the leased fleet to 10,000 buses in the coming years. However, the transport division continues to face severe financial challenges.
Transport Deficit Widens
In 2025-26, BEST's electricity division reported revenue of Rs 4,624 crore against expenditure of Rs 4,509 crore, generating a surplus of Rs 115 crore. In contrast, the transport division earned Rs 1,371 crore while incurring expenditure of Rs 3,567 crore, resulting in a deficit of Rs 2,196 crore.
For 2026-27, the transport deficit is projected to increase to Rs 2,439 crore. Coupled with pending gratuity and terminal benefit payments of Rs 1,502 crore to retired employees, BEST requires financial assistance of Rs 3,941 crore, Sethi told the committee.
She added that the current year was financially challenging and that the undertaking was therefore seeking enhanced support from the civic body.
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Committee Discusses Revival Measures
Responding to the presentation, Standing Committee Chairperson Prabhakar Shinde said a meeting on strengthening BEST was held with Chief Minister Devendra Fadnavis on June 5.
He expressed confidence that measures to improve BEST's financial health would soon be implemented and that a solution would be found to address both the transport deficit and the pending dues of retired employees.
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