According to a recent report, the daily average loss for BEST's transport division is Rs2.26 crore.
Air-conditioned buses operated by the Brihanmumbai Electric Supply and Transport (BEST) Undertaking have become a white elephant for it, incurring daily loss of Rs1 crore and also finding no takers after being put on sale as scrap/second-hand vehicles. Just 7% of the fleet accounts for 44% of the loss the BEST is incurring. In the total fleet of 4,143 buses only 290 are AC ones.
In other words, it causes the Undertaking, which is already in the red, an annual loss of around Rs360 crore. The annual loss for the BEST is around Rs800 crore.
According to a recent report, the daily average loss for BEST's transport division is Rs2.26 crore.
"Air-conditioned bus operations should be completely discontinued if we want to turn the tide for the BEST, make it earn profit. It does not make any sense to continue operating a rickety fleet and ask South Mumbai residents to compensate through Transport Deficit Loss Recovery in the electricity bills," said Ravi Raja, a BEST standing committee member.
However, the idea to scrap AC bus services in and around areas of Mumbai was not accepted by the BEST administration on Tuesday. Therefore, the Undertaking's losses will continue.
For over two years now, the BEST has been making attempts to start phasing out its AC bus fleet, but it hasn't found any buyers. To begin with, it had put out 20 buses on the block, but there wasn't a single buyer. "The condition of these buses is no better than scrap. People won't commute in them even if the fares are halved," added Raja.
The BEST administration is making attempts to cut costs and reduce losses by reorganising bus routes that are least popular with commuters and also by withholding promotions and recruitment within the organisation.
In the red
Fleet size: 4,143
AC fleet: 290 or 7%
Total loss: Rs800 crore (approximately)
AC bus loss: Rs360 crore (44%)
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
)
){kind=small}
){kind=small}
)
)
)
)
)
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}