BEST Leases Staff Quarters in Prime Mumbai Location to Boost Revenue

Mumbai: The Brihanmumbai Electric Supply and Transport (BEST) is inviting bids from government, semi-government, and private companies to lease 35 staff quarters in the prestigious south Mumbai area on Altamount Road. The goal is to raise Rs 263 crore, which could help curb some of the financial losses the organization has been facing.

The revenue generated from monetizing these assets is expected to provide a significant financial boost. An official from BEST stated that this move is part of a broader strategy to optimize the organization's resources and improve its financial health. However, Hussain Indorewala from the citizens' group Aamchi Mumbai Aamchi BEST has expressed concerns. He believes this move indicates that BEST is downsizing its staff and has no plans to increase the number of staff or buses, which could negatively impact commuters.

The 35 flats are divided into 15 units in the ‘A' wing and 20 units in the ‘B' wing. These flats are available on an ‘as is where is' basis for long-term residential purposes. The tender for these flats will open on August 21. According to the tender conditions, 25% of the payment must be made within 30 days from the date of the ‘letter of acceptance,' with the remaining 75% payable before the possession of all flats is handed over.

Companies are invited to bid with a base price of Rs 263 crore for leasing all 35 flats for a period of 30 years, extendable by another 30 years. The apartments are located in a building adjacent to Antilia, the residence of Reliance Industries chairman and managing director Mukesh Ambani.

The BEST aims to lease out these high-end apartments, which have served as staff quarters for decades, to fund its operations and reduce financial losses. The lessee will be responsible for maintenance and repairs and may modify the premises without increasing the built-up area. Additionally, the lessee may redevelop the property if the Brihanmumbai Municipal Corporation (BMC) certifies the need for such development during the lease period, as outlined in the tender document.

This move by BEST reflects a growing trend among public sector organizations to leverage their assets to address financial challenges. By leasing out these valuable properties, BEST hopes to secure a steady stream of revenue that can be reinvested into improving its services and infrastructure.