Mumbai: BMC Proposes ₹1,000 Crore Grant For BEST Against ₹4,000 Crore Demand, Pushes For Structural Reforms
· Free Press Journal
Mumbai, June 10, 2026: In a move that could deepen concerns over the financial viability of the Brihanmumbai Electric Supply & Transport (BEST) undertaking, the BMC has proposed a grant of just Rs 1,000 crore for 2026-27 against the utility's demand for Rs 4,000 crore to offset mounting losses. The proposal will be placed before the BMC's Standing Committee for approval on Friday.
Grant Allocation And Deductions
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The proposed Rs 1,000-crore grant will effectively be lower, with nearly Rs 93.78 crore set to be deducted towards BEST's property tax dues before the balance is disbursed.
The allocation comes despite the BMC having provided Rs 12,312 crore in financial support since 2014. However, rising operational costs, inadequate fare revenue, and mounting liabilities continue to keep the transport undertaking under severe financial strain.
BMC Urges Structural Reforms
While BEST has maintained that the entire Rs 4,000 crore package is necessary to meet retirement liabilities and augment its depleted fleet, the BMC has made it clear that repeated bailouts cannot substitute structural reforms.
Citing a financial revival roadmap shared with the undertaking in 2017, the civic administration has underscored the need for urgent corrective measures, cost rationalisation, greater operational efficiency, and a passenger-focused business model. Without a credible turnaround plan, the BMC noted, continued financial support alone will not restore BEST's long-term viability.
BMC's Financial Assistance To BEST
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