Undertaking requests 'big brother' to step in and create a permanent fund to provide help to it every year
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At least Rs 1,000 crore -- that's how much the BEST Undertaking, struggling to come out of a financial crisis, wants from the civic body to stabilise itself. The administration has requested Brihanmumbai Municipal Corporation (BMC) to step in and create a permanent fund to help it every year.
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For the last many years, the Undertaking has been continuously running into losses. For the last four years, the transport wing of BEST has incurred a loss of about Rs 2 crore every day. The organisation faced its worst nightmare when, for the first time in its history, the February salaries of 42,000-odd employees got delayed by 20 days.
Firefighting starts
Mayor Vishwanath Mahadeshwar has called a special meeting today with group leaders, the municipal commissioner and the BEST general manager to discuss this financial crisis and how to tackle it. Sources said BEST general manager Jagdish Patil will submit a proposal on the monetary help the organisation requires.
SP group leader Rais Shaikh said, "We want to help the BEST in all possible ways; a decision will be taken at the meeting."
Loan burden
For 2016-17, the BEST registered a loss of Rs 2,000 crore. Four years back, the BMC had loaned it Rs 1,600 crore. Out of this, the BEST has repaid Rs 900 crore. The remaining Rs 700 crore has still not been paid because the BEST does not have the interest amount (Rs 250 crore). The Undertaking has asked the BMC to waive off the rest of the loan.
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