BMC to take a call on BEST budget merger this week

Sena says measure will wipe away transport undertaking’s losses; merely clearing proposal not enough, says Opposition

October 25, 2017 12:11 am | Updated 12:11 am IST

In crisis: The BEST has accumulated losses of about ₹2,500 crore over the last decade and has been unable to pay employees salaries on time.

In crisis: The BEST has accumulated losses of about ₹2,500 crore over the last decade and has been unable to pay employees salaries on time.

Mumbai: The Brihanmumbai Municipal Corporation (BMC) will decide this week whether to go ahead with the proposal to merge the budget of the Brihanmumbai Electric Supply and Transport (BEST) Undertaking with the annual civic budget.

The Shiv Sena has touted the proposal as a solution to the transport undertaking’s ills, saying it would wipe out its losses and enable BEST to pay its 42,000 employees their salaries on time.

The BEST has accumulated losses of about ₹2,500 crore over the last decade, delaying salary payments and forcing the undertaking to take overdrafts to pay them. Merging its budget with that of the BMC, which boasts of fixed deposits of over ₹60,000 crore, will help tide over the losses, according to the proposal.

Mayor Vishwanath Mahadeshwar told The Hindu that the merger would fulfil the promise made by the Sena manifesto, and would be similar to the merger of the Rail Budget with the Union Budget.

The proposal has been cleared by the BEST, and will be tabled for approval at the BMC’s general body meeting on Friday.

“This merger, coupled with some drastic measures, will provide Mumbaikars better transport services,” Mr. Mahadeshwar said.

‘Need political will’

Detractors, however, say that even if the BMC does clear the proposal, it is no guarantee that BEST employees will receive their salaries on time.

“Merely clearing the proposal will not help. It can be implemented only after certain provisions of the BMC Act are amended by the State Urban Development Department, and needs to be cleared by either the State Cabinet or Assembly,” said Congress leader Ravi Raja, leader of the Opposition in the BMC and a member of the BEST committee. He said that an earlier proposal to levy a transport fee from BEST electricity consumers has disappeared from the government files, despite being similarly cleared by both BEST and the BMC.

“The point is, do we have the political will here, especially considering that even the ₹5,500 Diwali bonus for BEST employees this year was given as a loan by the BMC, which will have to be repaid,” Mr. Raja said. The employees got the bonus only after they threatened to strike work and Shiv Sena chief Uddhav Thackeray had to get the Mayor to intervene in the matter

The BJP, meanwhile, has kept its cards close to its chest on the merger. It may play second fiddle to the Sena in the BMC, but it is the other way round in the State government.

The BJP’s member on the BEST committee, Atul Shah, said, “We are not the ruling party in the BMC, the Shiv Sena is. Superficially fulfilling manifesto promises makes no sense without resolving the issue. Let us see what terms and conditions are being put forward by the BMC. The BEST can’t just expect money without accepting reforms that come with it. The BEST can’t just expect to spend the funds any ways it likes and return to the BMC for more.”

Reforms and resistance

Municipal commissioner Ajoy Mehta has already said that the merger would be possible only if BEST accepts certain conditions, such as allowing private buses in its fleet and reducing remunerations paid to BEST employees.

Both proposals have already faced opposition from the BEST Workers’ Union. Shashank Rao, general secretary of the union, said, “We will not allow private buses into the BEST fleet; it’s akin to privatisation and we will not accept it. Also, we will not accept lowering of emoluments for employees. We feel it’s actually time to renegotiate wage agreements for better pay.”

Mr. Rao says the transport undertaking will always make losses, but the issue is about who will foot the bill. Earlier, the BEST’s cash-rich electricity division would cover the transport division’s losses. Now, the BMC must absorb them, since transport is a service that must be provided to the people at affordable rates by the State, he said.

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