Mumbai: The Brihanmumbai Electric Supply and Transport (BEST) presented an estimated deficit budget of Rs 1,887 crore for financial year 2021-22 before BEST’s standing committee. BEST’s revenue from its transportation wing is estimated to decline to Rs 1,407 crore against expenditure of Rs 3,039.24 crore in operating a total of 3,675 buses.
BEST, General Manager Surendra Kumar Bagde present at the meeting said, “The operation projects to spend Rs 6,827.83 crore on its bus transits and electricity supply but stands to generate revenue of only Rs 4,939 crore”. “For fiscal 2021-22, our target is to increase our ridership to over 30 lakh daily for which we will need more buses. We are targeting to double our fleet to about 6,337 buses by March 2022,” added Bagde.
BEST’ transportation wing operates a total 3,675 buses, out of which BEST owns 2,875 buses and another 800 buses are acquired on wet-lease. There is a huge gap between BEST’s revenue and expenditure due to the social distancing norms that buses have to follow. BEST as per the norms is allowing only one passenger per seat and limited number of standing passengers. The bus ferries could carry about 36 lakh commuters before lockdown. However, it has come down to 18 lakh people following social distancing norms. The revenue per bus was Rs3.6 crore, now it is 1.8 crore per bus. Another official said, we have urged the state government to allow buses to run to full capacity like MSRTC”.
BEST’s electricity wing that supplies power to about 10 lakh people in the island city has shown losses. It has incurred losses of Rs 263.59 crore with expenditure at Rs 3,795.89 crore and earnings projected at Rs 3,532.30 crore.
The gap between revenue and expenditure has forced BEST to ask financial aid from BMC, its parent body. Citing revenue gap, it was struggling to pay the salary of its employees for September. After receiving a grant of Rs 60 crore, it could gather Rs 100 crore to pay its employees.