Mumbai: Reintroducing routes may have contributed to losses

  • | Monday | 23rd July, 2018

The BEST had re-introduced routes, and tweaked certain routes, but they all seemed to be in losses, grossly exposing the inability to trap passengers. The losses in 2017-18 from newly-introduced and re-introduced or modified bus routes stood at Rs 26.63 crores. The losses from such routes stood at Rs 15.97 crores in 2013-14. The re-introduction and introduction of some bus routes by the BEST in the last five years seems to have been one of the reasons for the heavy losses. It shut down five routes of the 15 routes it introduced — some within three months.

The re-introduction and introduction of some bus routes by the BEST in the last five years seems to have been one of the reasons for the heavy losses. As per revised details provided by the undertaking for the last five years, none of the 84 routes of whose details were given, made profit. The BEST had re-introduced routes, and tweaked certain routes, but they all seemed to be in losses, grossly exposing the inability to trap passengers. The losses from such routes stood at Rs 15.97 crores in 2013-14. The losses jumped manifold, dropped and resumed before finally reaching higher than the losses suffered in 2013-14. The losses in 2017-18 from newly-introduced and re-introduced or modified bus routes stood at Rs 26.63 crores. The route that made most losses was 485 Ltd, which was introduced in November 2013, and once cancelled in May 2016. The re-introduction and cancellation date is not provided but revenue, operational cost and losses are provided till the financial year 2017-18. The total losses from the route since its introduction, as per data, stand at Rs 8.97 crores. The second route 458 Ltd, which was introduced in August 2014 and has not been cancelled though it has seen losses growing each year. Its total losses stood at Rs 8.15 crores since its operations. The third route, which made most losses was 297 Ext, which was introduced in June 2014. It suffered losses amounting to Rs 1.71 crores in 2014-15 to Rs 1.84 crores in 2017-18. Its total losses were Rs 7.32 crores. The BEST, however, was more prompt on some routes that were introduced in 2017-18. It shut down five routes of the 15 routes it introduced — some within three months. Bus route number 677 which made the most losses at Rs 95 lakhs was shut down within four months of its introduction. "The routes are being introduced or scrapped based on the whims. There is no study. In London, they do a proper study before introducing routes. The BEST needs to focus on feeder routes. Who will take a long distance bus when it takes longer to reach and the ride is not convenient too," said Kedar Hombalkar, former member of BEST committee. "The problem is that no route is profitable. We are trying several things and government is not willing to give us private lanes. But efforts from our end are on," said Ashish Chemburkar, chairman of BEST.

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