The Hindu 20.12.2013
BEST may get Rs 375-cr booster from civic body
To provide relief to cash-strapped BEST (Brihanmumbai Electric Supply
and Transport), the BMC has decided to hike its octroi rate on crude
oil sales by 25 basis points and set aside the revenue therefrom for the
power and transport utility.
“The margin will differ as per sales. But the BEST will be
allotted Rs 225 crore every year,” said BMC’s standing committee
chairman Rahul Shewale. BMC earns around Rs 6,000 crore a year through
octroi on crude oil sales.
The standing committee has also proposed to provide Rs 100 crore every year to BEST as its transport fund. Till the
last financial year, the figure was a meagre Rs 50 lakh. The Jawaharlal
Nehru Urban Renewal Mission (JNURM) mandates a civic body to create a
transport fund, a proposal for which has been pending with the BMC for
almost three years. BEST had earlier sought Rs 100 crore under this fund.
Besides this, the standing committee has also proposed allotting
an additional Rs 50 crore for BEST buses in the city. BEST has been
arguing that the civic body must compensate it for the revenue foregone
due to concessions provided to senior citizens and schoolchildren. It
had also demanded money for capital expenditure.
The standing committee has made it clear that the entire fund of
Rs 150 crore and additional should be utilised only for capital
expenditure. “BEST will submit a report to the corporation every three
months on the usage of the funds,” Shewale added.
Terming it a historic decision, BEST general manager O P Gupta
said, “It is probably the biggest way in which the corporation has
extended a helping hand towards BEST in the last 108 years.” The
standing committee’s recommendations would have to be approved by the
civic administration and the general body for it to take effect.
The committee on Thursday also approved the fare hike proposed by BEST
in September. The fares will see an increase of 6-33 per cent for
ordinary buses for the 2014-15. As per the proposed fares, commuters
will have to pay Rs 7 for the minimum distance of two km. BEST hopes to
earn Rs 130 crore from the hike annually.
