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'BEST had avoided fare hike for too long'

Published: Friday, Sep 10, 2010, 1:52 IST
By Alok Deshpande | Place: Mumbai | Agency: DNA

Road transport service by the BEST has always been known for its efficiency. But during every bandh, its buses have to bear the brunt of mobs leading to their extensive damage. In the game of one upmanship, political parties are pushing the transport utility into the red. Just because the Shiv Sena tired to score points by calling for a bandh on price rise, the Cong-NCP were trying to stall the fare hike, even when BEST was bleeding by a whopping Rs40 lakh every day. But finally, the fare hike has been passed. DNA speaks to BEST committee chairperson Sanjay Potnis.

What was the reason behind hike in ticket price?
The Centre announced the price hike in June and CNG prices were increased by Rs9.50; and since 2009, the diesel prices have gone up by 100%. But BEST always avoided any price hike in spite of suffering tremendous losses. BEST is suffering a loss of Rs40-45 lakh per day. We are aware that this price hike will affect 46 lakh daily commuters, but at the same time, we have to think about the 42,000 BEST employees’ families. The loss became unbearable for us and hence it was necessary to announce the price hike to continue BEST’s functioning.

Why have the losses become unbearable so suddenly?
Till 2003, BEST was benefited through cross-subsidy.That means the electricity department of BEST used to share the losses which the transport department used to suffer. But under Electricity Regulation Act 2003, the cross-subsidy was halted and the BEST electricity department was taken up by the Maharashtra Electricity Regulatory Commission (MERC). We were left alone to deal with the losses.

Does that mean the losses increased only because the cross-subsidy was stopped?
As I told you, that was one of the reasons. BEST has been spending Rs160 crore per year on various social activities. For example, we offer free pass to students, blind people, freedom fighters and many others. These are activities which are supposed to be carried out by the state government. We have been asking the state government to give us subsidy, since we are doing what they should do. But there has been no response.

Your party Shiv Sena was in forefront calling a bandh against price rise. Isn’t this double standard?
Yes, we were against price hike and still are. But you should ask the central government who introduced inflation and price hike at the first place. Had it been in our power we would not have allowed any price hike. The proposal to raise the ticket prices was pending for long, but we tried to avoid it for as long as we could.

Don’t you think the party will suffer due to its decision in the BMC elections?
I know this is not a voter-friendly decision. But 42,000 BEST employees and their families are equally important to us. We avoided the fare hike for seven years, so I think the people of Mumbai will understand our position and will co-operate with us. And there is no question of us suffering in elections because we are not the ones who have started the price hike.

Is there any possibility to reverse your decision?
If the government gives a special subsidy for BEST on diesel and CNG rates, we will reverse the decision in the next 24 hours. BEST needs money to run its services and this fare hike will increase the daily income by Rs25 lakh.

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