Amid fall in passenger footfall to 25 lakh from 42 lakh and failure to earn profits on even 10 bus routes in any one month of the past five years, the civic body has asked BEST to pull up its socks or perish.
In a stern warning to the undertaking, the Brihanmumbai Municipal Corporation, has said that it won't dole out any more subsidy on the non-productive and inefficient services reiterating that the Brihanmumbai Electric Supply and Transport will have to arrest its deteriorating financial condition, especially of its transport division.
Municipal Commissioner Ajoy Mehta said that every transport system has to be subsidised and the civic body cannot get away from it. ''However, the moot question is what will be the level of subsidy? Are you going to provide subsidy for non-productive and inefficient use or for efficient and productive use? In the BMC, we have decided that BEST's productivity and efficiency have to go up and have to reach the optimum level. BMC will then meet the gap.''
The BMC's move comes at a time when BEST's annual loss is about Rs 900 crore and it accumulated loss as on date is over Rs 5,000 crore. BEST will need Rs 10,000 crore in the next five to six years for its existing operations. BMC has already declined to provide an interest-free loan to BEST for 10 years, asking the undertaking to quickly reform.
Mehta made it amply clear that burgeoning losses due to inefficiency are non-negotiable. ''Nobody can walk away from that. Whether it is money with BMC or BEST, it is public money which needs to be spent cautiously. We are the trustee of the public money and need to ensure that it is spent correctly,'' he warned.
Mehta's message is to strictly adhere to reform process by making BEST competent, customer-focused, efficient and financially sound. BEST will have to reach its performance at an optimum level by ramping up operational efficiency.
Another BMC officer said the civic body in no uncertain terms has told BEST to actively follow right-sizing of the fleet, procure buses on wet lease in order to reduce the cost of manpower and maintenance and further rationalize route network. Besides, BEST can no longer continue its operation with absolute technology backwardness and complacent attitude.
As far as the electricity business is concerned, BMC has stressed the need to optimize metering billing collection and also achieve high availability and reliable services. BEST will have to actively follow a slew of initiatives to become a digital utility to stay afloat.
