Mumbai News: BEST Undertaking Seeks ₹3,419 Cr Financial Assistance From BMC To Acquire New Buses

Mumbai News: BEST Undertaking Seeks ₹3,419 Cr Financial Assistance From BMC To Acquire New Buses

The transport body stated that as per clause no. 3 in a memorandum of understanding (MoU) signed with BEST Workers Union on June 11, 2019, it is necessary for them to maintain 3,337 buses in their fleet.

Kamal MishraUpdated: Friday, July 28, 2023, 10:33 PM IST
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BEST Undertaking Seeks ₹3,419 Cr Financial Assistance from BMC to Acquire New Buses | Representative image/ File

Mumbai: The Brihanmumbai Electric Supply and Transport (BEST) undertaking has requested financial assistance of Rs 3,419 crore from the Brihanmumbai Municipal Corporation (BMC) to acquire 2,237 new buses in a phased manner, as revealed in a recent letter sent by the new General Manager of BEST, Vijay Singhal, to BMC Commissioner Iqbal Singh Chahal. FPJ acquired a copy of the said letter.

MoU between BEST & BMC

In the letter, the transport body stated that as per clause no. 3 in a memorandum of understanding (MoU) signed with BEST Workers Union on June 11, 2019, it is necessary for them to maintain 3,337 buses in their fleet. Highlighting the need for procuring 2,237 new buses, the transport body mentioned that it had scrapped 1,696 of its buses before the end of March, and 541 more are expected to be removed in this financial year. The letter also stated, "Under the Capital Work Budget, a provision of Rs 2,58,391.25 lakh was made in 2022-23 (budget) for 1,696 electric buses, and Rs 83,552.75 lakh is allocated in the 2023-24 (budget) for 541 electric buses."

The BEST's fleet has decreased to 3,100 from around 3,500 buses a few years ago, according to officials. Labour union leaders point out that the BEST's financial condition is delicate as it suffers monthly operating losses of Rs 250 crore in the absence of assured financial assistance from the BMC.

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