No BEST fare hike, but BMC to set up Rs 100-crore fund

BEST has proposed a six to 33 per cent hike in bus fares to earn an additional Rs 130 crore every year.

In a populist move, the BMC did not approve the fare hike proposed by the Brihanmumbai Electric Supply and Transport  (BEST) Undertaking for the fiscal year 2014-15. BEST has proposed a six to 33 per cent hike in bus fares to earn an additional Rs 130 crore every year to meet losses of its transport division, which are pegged at Rs 748.13 crore in 2013-14 and Rs 775.98 crore in 2014-15. The minimum fare, under the proposal, is Rs 7 for 2-km distance.

Instead, the BMC, for the first time in 108 years, has approved a proposal of the standing committee to set up a Dedicated Urban Transport Fund, in which Rs 100 crore will be provided to BEST to cross-subsidise its losses. The fund, however, is valid only for the 2014-15 fiscal.

Civic chief Sitaram Kunte refused to comment on whether the BMC would extend the arrangement in the long run. He said, “To enable financial assistance to BEST, it is proposed to give a portion of the income expected in 2014-15 pertaining to transport and traffic as a contribution to this fund.”

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