The merger, pending the BMC chief's approval, will bring financial stability to the ailing undertaking
The general body of the Brihanmumbai Municipal Corporation (BMC) on Thursday cleared a proposal to merge the budget of the Brihanmumbai Electric Supply and Transport (BEST) Undertaking with the annual civic budget. The proposal was cleared without any discussion in the House, however, it requires the civic chief's approval.
It is believed that the merger would, in the coming years, bring financial stability to the undertaking, which has been reeling under massive financial strain. At present, the transport undertaking has been dealing with losses of more than Rs 2,000 crores, which needs to be addressed immediately. The merger will be similar to the Railways budget with the Union Budget.
Both the Shiv Sena and the Congress have claimed that the merger of the BEST with the BMC's budget would save the sinking transport undertaking. "The cash-rich BMC can tide over the BEST's losses and pay salaries to around 42,000 BEST employees," said Congress corporator Ravi Raja, leader of Opposition in the BMC.
The merger of the budgets had been cleared by a majority of members of the BEST committee on August 14. The move had come after Shiv Sena leader Uddhav Thackeray assured unions of the bus service, who had staged a one-day strike, that the budget would be merged to ensure smooth operations of the undertaking. The unions had staged a protest following the delay in payment of their salaries.
The proposal to merge the BEST budget with civic annual budget was tabled for approval at the BMC's general body meeting on Friday (Friday? What date?) and it was cleared as no members opposed it. Mayor Vishwanath Mahadeshwar said that as no members were opposing it, the proposal stood cleared.
According to civic officials, over the last one decade, the BEST has accumulated losses of about Rs 2,000 crore, and this has resulted in delays in salary payments, and has forced the undertaking to take overdrafts to pay them. "Merging the BEST budget with that of the BMC can help it tide over the loses as the BMC has fixed deposits of over Rs 61,000 crore,"said Raja.
Civic chief Ajoy Mehta had stated in the past that the merger of the budgets would be possible only if BEST accepts certain conditions, such as allowing private buses in its fleet and reducing remunerations paid to BEST employees.
"As the merger will increase financial burden on the BMC, the civic chief will not go ahead unless terms and conditions set by the civic chief are followed," said a senior civic official, requesting anonymity.
HOW BEST STANDS
Additional burden on BMC after merger
Rs 2,100 cr (BEST losses in past 20 yrs) and Rs 500 cr annual expense
Rs 880 cr deficit annual budget
3,700 buses ply
42,000 number of employees
Rs 2,100 cr present loss
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