page_title: Brihanmumbai Electric Supply and Transport
section_title: Issues
hierarchical_section_title: Brihanmumbai Electric Supply and Transport / Issues
caption_attribution_description: Electricity revenues of the w: Brihanmumbai Electric Supply and Transport. Blue: Income Red: Expenditure Green: Profit/Loss
context_page_description: The Brihanmumbai Electricity Supply and Transport is a civic transport and electricity provider public body based in Mumbai, Maharashtra, India. It was originally set up in 1873 as a tramway company called "Bombay Tramway Company Limited". The company set up a captive thermal power station at the Wadi bunder in November 1905 to generate electricity for its trams and positioned it to also supply electricity to the city and re-branded itself to "Bombay Electric Supply & Tramways" Company. In 1926, BEST also became an operator of motor buses. In 1947, the BEST became an undertaking of the Municipal Corporation and rebranded itself to "Bombay Electric Supply & Transport". In 1995 the organisation was renamed to "Brihanmumbai Electric Supply & Transport" alongside Mumbai. It now operates as an autonomous body under the Municipal Corporation.
  BEST operates one of India's largest fleets of buses. The bus transport service covers the entire city and also extends its operations outside city limits into neighbouring urban areas. In addition to buses, it also operates a ferry service in the northern reaches of the city.
context_section_description: In the financial year 2004–05, the company earned Rs. 15142.2 million from its electricity department, and 839.18 crore from its transport department. Profits from its electricity department totalled Rs. 152.82 crore (US$35m), and losses in its transport department totalled Rs 212.86 crore ($48.8m), giving the company a net loss of Rs. 62.04 crore ($14.2m). For the financial year 2005–06, BEST is expected to earn Rs. 15401.3 million ($352.92m) with a profit of 1408 million ($32.3m) from the electricity department alone. However, its transport department is expected to earn 9486.8 million ($217.39m), with a loss of 1403.0 million ($32.26m). This gives it an estimated net loss of Rs. 5 million ($114,575). Newer management techniques, such as retrenching of excess staff (494 till date), and the closure of less patronised routes, have reduced the losses in recent years, from a high of Rs. 1.75 billion ($40.1m) in 2001. Daily earnings from its transport system is Rs. 20 million ($458,450). It collects Rs. 7 million ($160,450) worth of five rupee coins daily, Rs. 4.8 million ($110,000) worth of ten and twenty rupee notes, and Rs. 6 million ($137,535) worth of fifty rupee notes, through its fare collection system. This has led a unique situation wherein it has accumulated a surplus of short change. In July 2005, the company floated tender inquiries to 54 banks to exchange the loose change, which totalled 46.7 million ($1.07m). However, none of the banks sent in a single bid, some citing that their vaults are full, and others saying it would be unprofitable for low denominations, given security considerations.
  Though the BEST is a government-owned company, it does not receive any financial assistance from the BMC, or the state government. BEST also earns revenues by way of advertisements on its buses and bus-stops, and through rent from offices on owned properties. The BEST, being a public utility company, cannot increase electricity and bus fares to maximise its profits. An increase, when effected, is usually carried out to curb losses due to inflation. BMC approval is needed before such an increase goes into effect.Prior 2003 the BEST Understanding was a case Peter paying for Paul means the Electricity Division was in profit and Transport loss ,so profit of Electricity was diverted to Transport so break even .The Company down stream started after the inception of Electricity Act 2003 ,in that act it is stated that the profit of Electricity supply cannot be diverted but  to be used for same entity. After taking the issue with Maharashtra 
  Electricity Regulatory Commission the company was running by adjusting the profit but after Supreme Court  order,it could not adjusted the profit to transport now running in loss.
caption: Electricity revenues: Blue–Income, Red–Expenditure, Green–Net profits
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