City bus operator got just Rs 1000 crore in civic budget; warns rising costs and mounting losses are pushing the transport utility deeper into financial trouble
City’s largest bus network is increasingly dependent on civic subsidies to keep Mumbai moving. File pic
Mumbai’s civic bus operator BEST has sought a Rs 3000 crore financial lifeline from the BMC to stabilise its struggling finances, expand its bus fleet and clear pending dues of retired staff. BEST chairperson Trushna Vishwasrao, the undertaking’s first woman chief, said the request was made after BMC allocated only Rs 1000 crore in its budget. With mounting operational losses and rising fuel, maintenance and staff costs, the city’s largest bus network is dependent on civic subsidies to keep Mumbai moving.
BEST by the numbers
|
Indicator |
Figure |
|
Daily passengers |
Rs 28 lakh |
|
Accumulated losses |
Rs 9500 crore |
|
Monthly BMC bailout |
Rs 100 crore |
|
BMC budget allocation |
Rs 1000 crore |
|
Funding now requested |
Rs 3000 crore |
BEST operates one of Mumbai’s largest public transport networks but has faced persistent financial strain over the past decade.
Then vs now
|
Period |
Fleet size |
|
15 years ago |
4800 buses |
|
Current fleet |
3000 buses (approx.) |
|
Potential after funding |
5400 buses |
Experts say Mumbai already has the depot infrastructure and operational experience to handle a larger fleet.
Why BEST needs more funds
>>Rising fuel and maintenance costs
>>Staff and pension liabilities
>>Fleet modernisation, especially electric buses
>>Operational losses and debt obligations
The additional funding would also help settle dues owed to retired BEST employees.
What the chairperson says
Trushna Vishwasrao, Chairperson, BEST
“After the budget allocated just Rs 1000 crore, I have written to the BMC chief seeking Rs 3000 crore to stabilise operations and support expansion.” She said the funding would help maintain services and ensure financial stability for the undertaking.
What Rs 3000 crore could fund
Transport planner Aditya Rane outlines a possible spending plan
|
Proposed use |
Estimated cost |
|
Support existing fleet operations |
Rs 800 crore |
|
Purchase-2700 new buses |
Rs 1350 crore |
|
Operate the new buses |
Rs 800 crore |
This investment could potentially double BEST’s fleet to around 5400 buses, improving service coverage across Mumbai.
Public transport watchers say spending will be crucial
Jitesh Utekar,
‘BEST is running into losses, so how this Rs 3000 crore is utilised will be important. Will the fleet of 3000 self-owned buses be preserved with the funds you requested? Or will the BEST divert money to private bus contracts? Or will officials and BEST committee buy new cars with this money, or will they issue tenders for the renovation of depots and bus stands? And will new contracts for reconstruction be issued again in the name of modernising bus stops?’
Rupak Dhakate,
‘This Rs 3000 cr aid, though, is a very small amount; it should be used mainly for buying new CNG midi and 11-metre buses. Currently, BEST’s own bus fleet is too small, and BEST is at the mercy of contractors. If they go on strike, BEST will suffer.’
Gandharva Purohit,
‘Can revenue from scrap sale be utilised in addition to Rs 3000 crore for this too? TMT bought 20 non-AC CNG Buses. Why can’t BEST? Also, they should settle the money of retired staff. How much would be required for it?’
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