Cut BEST loss for a better city: Centre

Sandeep Ashar

The Centre has issued an ultimatum to the state and the Brihanmumbai Municipal Corporation (BMC): Either get your public road transport finances in order or face funding cuts in ongoing infrastructure projects.

At stake are seven projects worth Rs27,000 crore under the National Urban Renewal Mission (NURM) that are crucial to the city’s development. The city expects the Centre to fund 30 per cent of the funds over the next five years. 

The Union Urban Development Department has now trained its guns on the loss-making transport wing of the Bombay Electricity and Supply Transport (BEST), a BMC undertaking, after pressing for reforms in the Rent Control Act, Urban Ceiling Act and housing. The transport undertaking has incurred over Rs175 crore in losses. It is presently subsidised by surplus recorded by the electricity wing.

The ministry laid down the condition when it met a team of Mantralaya and BMC officials to grant Rs364 crore in funds for the Mumbai Sewer Disposal Programme and the Bandra Metro Sea Link project on Friday.

Jairaj Phatak, state principal secretary of urban development and a member of the delegation, tried to soften the Centre’s stand by stating that it has “suggested” the condition as a long-term measure and has no bearing on the current financial year.

“The Union ministry feels that public road transport must run efficiently and should not be cross-subsidised by surplus recorded in the electricity undertaking,” he said. “It will have no bearing on the sanctioned Rs364 crore. All we need to do is offer them a commitment that the state is working towards negating the losses.”

A top BEST source said that there are plans afoot to levy a surcharge on tickets, thus increasing commuter fare and decrease the number of routes covered by the BEST buses by at least 100. (Presently, the buses ply on 350 different routes.) “Since civic elections are slated for early next year, we do not expect any price hike announcements immediately,” said another official.

Phatak said that the city is planning to study public road transport systems in Hyderabad and Bangalore that are functioning efficiently. “We need to set up a mechanism where the price recovery from commuters equals the expenditure incurred,” he said.

BEST committee member K Raviraja said, “If the state is serious about cutting losses of the transport wing, it must provide monetary assistance.”