Mumbai, Feb 4 (PTI) – The Brihanmumbai Municipal Corporation (BMC) has earmarked ₹1,000 crore for the Brihanmumbai Electric Supply and Transport (BEST) undertaking in its budget for the financial year 2025-26, acknowledging the persistent financial struggles of Mumbai’s key public transport service.
BEST, which operates a fleet of around 3,000 buses and serves over 30 lakh commuters daily, is the city’s second-largest public transport system after the suburban railway network. The budget document, presented on Tuesday, emphasized that despite BMC’s substantial financial commitments toward ongoing projects, the provision was made considering the critical financial condition of BEST.
Allocation for Operations, Infrastructure, and Expansion
The ₹1,000 crore grant will be utilized for various essential expenditures, including infrastructure development, acquisition of capital equipment, loan repayments, wet lease bus procurements, employee pay revisions, daily operations, and the Intelligent Transport Management System (ITMS) project. Additionally, funds will cover employee Diwali bonuses, pensioner dues, and electricity bills.The document further highlights that, as per state directives, BMC will contribute ₹128.65 crore—its 5% share—for procuring and deploying 2,000 electric buses in Mumbai. However, it remains unclear whether this amount is part of the ₹1,000 crore allocation or a separate provision.
Financial Burden and Past Assistance
BEST has been struggling with severe financial distress, accumulating losses amounting to approximately ₹9,500 crore. Since 2012-13, BMC has extended financial support of ₹11,304.59 crore to sustain the transport service.Additionally, the budget document mentions that ₹992 crore was sanctioned by the 15th Finance Commission for the procurement of electric buses. Out of this, ₹493.38 crore has already been received and disbursed, with the remaining ₹498.62 crore pending receipt.
The latest allocation underscores BMC’s ongoing efforts to keep Mumbai’s essential transport services afloat, ensuring improved mobility for millions of daily commuters despite the financial strain on the civic body.