Around Rs 40.58 crore is deposited by BEST in the escrow account with a private bank every month.
The BMC standing committee has cleared a proposal on Wednesday that will help the Brihanmumbai Electricity Supply and Transport (BEST) undertaking in paying salaries to its 36,000 employees on time.
The civic standing committee cleared a proposal to deposit the principal and interest amount of a loan taken from BMC to an escrow account by the 23rd of every month, instead of the usual practice of depositing it on the 1st of the month, so that BEST has money for day-to-day operations at the start of the month. Around Rs 40.58 crore is deposited by BEST in the escrow account with a private bank every month. It is then transferred to BMC's bank account at the end of the month.
In 2012-13, BEST had taken a loan of Rs 1,600 crore from the BMC at 10 per cent interest, and as per the loan agreement, the BEST had to open an escrow account where it has to deposit interest and principal amount of the loan that can be transferred to BMC's bank account from the escrow account at the end of the month. However, the BEST requested the BMC to allow them to deposit the money by 23rd of the month as the money lies unused in the bank for almost three weeks while BEST suffers cash crunch.
The BEST requires around Rs 45 crore each month to pay salary to its 36,000 employees, and this amount will be a great help for timely payment. It has assured that it would deposit the money in escrow account with their daily earnings
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The BEST requires around Rs 45 crore each month to pay salary to its 36,000 employees, and this amount will be a great help for timely payment. It has assured that it would deposit the money in escrow account with their daily earnings
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