Mumbai: BMC proposes Rs 1,200 crore bailout for BEST

BEST's current debt stands at Rs 1,274 crore

After sanctioning Rs 600 crore for the Brihanmumbai Electric Supply & Transport Undertaking (BEST), the Brihanmumbai Municipal Corporation (BMC) is now mulling the release of another Rs 1,200 crore to its transport wing, which has been reeling under a debt of Rs 1,274 crore.

The matter was discussed during the BMC group leaders meeting and the proposal will be tabled in the standing committee meeting for official approval.

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The BMC had already sanctioned Rs 600 crore at the standing committee meeting in June. Of this, Rs 100 crore will be handed over to the BEST every month for day-to-day expenses.

In return, BEST has agreed to undertake various reforms to improve its financial health. The conditions include a minimum fare of Rs 5 and doubling of its bus fleet.

The BEST has already started with the reduction in base fare to Rs 5 and has initiated the procurement of 450 buses. The monthly aid from BMC will help BEST pay its employees. But, the transport wing is paying crores in interest on various loans that it had taken over the years. BEST needed a lump sum amount to get rid of all the loans at one go and BMC is prepared to give it a helping hand.

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"As of today, the BEST has a debt of Rs 1,274 crore. The funds from the BMC will help it get rid of the debt and interest burden," said Ravi Raja, leader of the Opposition.

He added, "BEST is notorious for its unwise spending methods and BMC and BEST should keep it in mind that it is taxpayers' money and should be used in a sensible way this time."

Rais Shaikh, group leader, Samajwadi Party, told mid-day, "There wasn't any written proposal about the financial aid to BEST at the group leaders' meeting. I raised the question about the financial help of Rs 1,200 crore to which Municipal Commissioner Praveen Pardeshi replied that he would send a proposal."

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