Tuesday, August 30, 2016

BEST bus service losses mount to Rs905.3 crore as income from passengers dwindle

Moneylife‎‎‎: Mumbai: Tuesday, August 30, 2016.
The Brihan Mumbai Electricity Supply and Transport (BEST) Undertaking, which is civic transport and electricity provider public body based in Mumbai, has suffered a massive loss of Rs905.3 crore on transportation services during FY2015-16 reveals a reply received under the Right to Information (RTI) Act. RTI activist Anil Galgali had filed the application seeking information about BEST transport services.
During FY2015-16, the BEST incurred a loss of Rs905.3 crores due to higher per passenger cost at Rs21.41 while its income generated per passenger was just Rs12.88, reveals the reply received by Galgali. During that period, over 106 crore passengers used BEST services resulting in an income of Rs1,367.11 crore. However, to run these services, BEST incurred a cost of Rs2,272.41 crore during FY2015-16, the RTI reveals.
Galgali, in a letter sent to Maharashtra Chief Minister Devendra Fadnavis and Municipal Corporation of Greater Mumbai (MCGM) Commissioner, requested to bail out the BEST transport services. During FY2014-15 and FY2015-16, the BEST administration paid Rs139.7 crore and Rs136.8 crore, respectively as tax to various authorities.
During 2011 and 2016, the BEST administration 11 times wrote to Urban Development Ministry, Transport Ministry to either reduce or waive off taxes it pays to different authorities. However, the successive governments ignored this, Galgali alleges.
"When in 2014-15, the BEST wanted to increase fares, the MCGM gave it a grant of Rs150 crore for not going ahead with fare increase. However, now even the MCGM is not paying any heed to the demands of BEST. To strengthen the public transport system in Mumbai, the government should constitute a separate fund, which can be used to bail out undertakings like BEST, which are used by lakhs of commuters on daily basis,” Galgali said.