BEST committee adopts resolution for financial grant instead of loan
BrihanMumbai Electricity Supply and Transport (BEST) management committee members on Thursday passed a unanimous resolution demanding that the BrihanMumbai Municipal Corporation (BMC) provide financial assistance of Rs 406 crore in the form of a grant, not a grant. ready. In the 2021-22 budget, BMC proposed to grant a loan of Rs 406 crore to BEST in order to alleviate its financial burden.
BEST has annual unpaid expenses valued at Rs 2,483 crore which includes government taxes valued at Rs 101 crore, electricity rights valued at Rs 564 crore, loans to short term loans worth Rs 425 crore and long term loans worth Rs 350 crore among other expenses. Committee members said another loan would only increase BEST’s financial burden. “Considering the heavy loss of the transport organization, BMC should provide financial assistance in the form of a grant and not a loan,” said Ravi Raja, Leader of the Opposition (LdP) at BMC and member of the BEST committee at the Free Press Journal.
“At the same time, BEST also has to pull up its socks. For the past four years he has sent the company a deficit budget and now they have to think of ways to generate income, ”Raja added. In the 2020-21 financial budget, BMC had offered financial aid of Rs 1,500 crore to BEST. However, due to the pandemic, the civic body had reduced the budget by Rs 500 crore.
“As a parent organization, it is the legal responsibility of BMC to provide financial support to BEST,” said Sunil Ganacharya, senior committee member. He also pointed out that, on the loan amount, the civic body will charge an interest rate of four percent, which would equate to around Rs 50 crore.
“BEST has obeyed all of the orders that came from BMC including the decision to reduce the minimum base tariffs to Rs 5. Now it is totally unfair for the civic body to give another loan on the body’s shoulder. transport, ”Ganancharya added. “BEST provided exceptional service during the pandemic, which is why we passed the resolution that will be tabled at the company meeting,” BEST president Praveen Shinde told the Free Press Journal.
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Posted on: Thursday February 25, 2021 11:41 PM IST