Provision was made despite civic body’s financial constraints, budget statement claims; BMC acknowledged its own financial constraints but emphasised the need to assist BEST due to its precarious financial position
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The BMC has allocated Rs 1000 crore in its 2025-26 budget to support the Brihanmumbai Electric Supply and Transport (BEST) undertaking, recognising its ongoing financial challenges. On Tuesday, the BMC acknowledged its own financial constraints but emphasised the need to assist BEST due to its precarious financial position. Notably, BEST, the city’s second-largest public transport system after suburban trains, operates a fleet of approximately 3000 buses, serving over 30 lakh commuters daily.
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“Although the BMC has significant funding requirements for ongoing projects and other essential objectives, a provision of R1000 crore has been made for BEST in 2025-26, considering its financial needs,” the Budget document stated. As per state directives, the BMC will contribute R128.65 crore (its 5 per cent share) towards the procurement and deployment of 2000 electric buses for Mumbai. It remains unclear whether this amount is part of the Rs 1000 crore grant or a separate allocation.
“Since 2012-13, the BMC has provided Rs 11,304.59 crore in aid to BEST, which continues to struggle with losses of approximately Rs 9500 crore. Further, the 15th Finance Commission has sanctioned R992 crore for BEST’s electric bus purchases. Of this, Rs 493.38 crore has already been received and disbursed, while the remaining Rs 498.62 crore will be provided upon receipt. R1000 crore is a grant and BEST can plan that in its budget planning, while an additional Rs 250 crore will be provided for purchasing buses,” said civic chief Bhushan Gagrani.
As per the BMC Budget 2025 documents, the funds will be used for infrastructure development, capital equipment purchases, loan repayments, wet lease buses, pay revisions, daily operations, the Intelligent Transport Management System (ITMS) project, Diwali bonuses of employees, pensioner dues and electricity bills.
The BMC Budget 2025 documents also said that as per the state government directives, BMC will contribute Rs 128.65 crore, its 5 per cent share, towards the procurement and deployment of 2,000 electric buses for Mumbai, but it is not clear if the amount is part of the Rs 1,000 crore assistance or a separate provision.
The BMC pointed out that since 2012-13, it has provided Rs 11,304.59 crore in financial assistance to BEST, which is financially bleeding with its accumulated loss pegged at around Rs 9,500 crore.
Amount will be used for
>> Infrastructure development
>> Capital equipment purchases
>> Loan repayments
>> Wet-leasing buses
>> Employee pay revisions
>> Daily operations
>> The Intelligent Transport Management System project
>> Diwali bonuses for employees
>> Pensioner dues
>> Electricity bills
