The Brihanmumbai Municipal Corporation (BMC) on Monday passed a proposal to give ₹400 crore in additional aid to BEST Undertaking. The standing committee demanded to know the details of the amount disbursed so far to it, and asked for an additional commissioner to keep track of financial aid to the organisation.
The BMC has been giving ₹100 crore every month to the ailing organisation as financial aid and has also committed ₹1,136 crore to help it repay its loans (about ₹600 crore given till date). BEST has already repaid ₹531 crore so far. As part of its next installment, the BMC will give BEST ₹400 crore from its accumulated surplus. A proposal to this effect was discussed in Monday’s standing committee meeting.
The proposal also mentioned several other points, including the BEST not informing the BMC whether its fleet, including wet leased buses, has touched 7,000, which was one of the conditions. The BEST has also not submitted reports regarding other BMC suggestions.
“While we are considering financial aid to BEST, BMC also needs to take into account its present and future financial conditions,” the proposal read. It lists the fall in BMC revenues, implementation of mega projects, and the ₹21 crore BEST is supposed to return while agreeing to dip into its accumulated surplus.
The proposal was passed in Monday’s meeting, but corporators echoed the BMC administration’s sentiments.
Leader of the Opposition Ravi Raja moved a motion in the meeting which was supported by majority members. He said, “BEST must give regular updates to the civic administration as well as the standing committee about the amount given to it. The BMC also needs to have a plan ready for how it will continue to give aid to the undertaking as its own revenue is dwindling. As listed in the proposal, the civic body is helping BEST despite being in dire straits because it is its responsibility. Therefore, it should give regular updates to the BMC,” he said.
Chairman Yashwant Jadhav directed the administration to take note of members’ suggestions and said an additional municipal commissioner be made responsible for keeping track of funds given to the organisation. The proposal was passed along with the motion.
Another BMC statement that lists the status of its fixed deposits was tabled for information before the meeting. Members took cue from the BEST proposal and demanded to know how BMC is going to manage its expenses next year onwards, especially since the State government will stop reimbursing it for loss of octroi after imposition of goods and services tax. They have asked the administration to give a written explanation in the matter.