Mumbai: The Brihanmumbai Municipal Corporation (BMC), in its budget for the financial year 2025-26 presented on Tuesday, has allocated Rs 1,000 crore for the civic bus undertaking BEST, acknowledging its financial challenges.

The Brihanmumbai Electric Supply and Transport (BEST) undertaking, the second-largest public transport system in the metropolis after suburban trains, operates a fleet of around 3,000 buses, serving more than 30 lakh commuters daily.

In the budget documents, the BMC stated that despite its own financial commitments, it has made the provision considering BEST’s financial position.

“Although BMC itself has a huge requirement of funds towards its ongoing projects and other important objectives, a total provision of Rs 1,000 crore is proposed in 2025-26 as a grant to BEST undertaking considering its financial position,” the document stated.

As per the budget documents, the funds will be used for infrastructure development, capital equipment purchases, loan repayments, wet lease buses, pay revisions, daily operations, the Intelligent Transport Management System (ITMS) project, Diwali bonuses of employees, pensioner dues and electricity bills.

The documents also said that as per the state government directives, BMC will contribute Rs 128.65 crore, its 5 per cent share, towards the procurement and deployment of 2,000 electric buses for Mumbai, but it is not clear if the amount is part of the Rs 1,000 crore assistance or a separate provision.

The BMC pointed out that since 2012-13, it has provided Rs 11,304.59 crore in financial assistance to BEST, which is financially bleeding with its accumulated loss pegged at around Rs 9,500 crore.

The documents also noted that Rs 992 crore has been sanctioned by the 15th Finance Commission for BEST’s electric bus purchases. Of this, Rs 493.38 crore has already been received and disbursed.

Addressing a press conference at civic headquarters after the presentation of the Rs 74,427.41 crore budget, BMC commissioner Bhushan Gagrani said the civic body will give Rs 1,000 crore as grant from its budget to BEST.

An additional Rs 250 crore will be given to the transport undertaking for the purchase of electric buses from the funds sanctioned by the 15th Finance Commission, said Gagrani, who is also the Maharashtra government-appointed administrator of India’s richest civic body.

“This way, a Rs 1,250-crore allocation has been made for BEST in the budget,” said the senior IAS officer.

The civic transport undertaking can decide how it wants to use the Rs 1,000-crore grant, but the remaining Rs 250 crore has to be deployed only for the purchase of electric buses, the BMC commissioner maintained.