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The Maharashtra cabinet has cleared BEST's plan to seek INR 3,400 crore from the Centre to modernize and strengthen Mumbai's electricity network. The proposal, valued at INR 3,346.29 crore, will be submitted through Power Finance Corporation under the Reforms-Based and Results-Linked Revamped Distribution Sector Scheme. The project aims to cut Aggregate Technical & Commercial (AT&C) losses, bridge the ACS-ARR gap, and deliver 24x7 affordable power. Earlier approvals in 2022 had sanctioned INR 1,649 crore for prepaid smart metering and loss-reduction works, now underway. The new funding is expected to boost operational efficiency, financial sustainability, and reliable electricity access for Mumbai consumers.
The Maharashtra state cabinet has approved BEST's proposal to seek approximately INR 3,400 crore from the central government to modernize and strengthen its electricity network. The initiative is designed to reduce distribution and commercial losses, improve operational efficiency, and provide 24x7 uninterrupted and affordable power to consumers across Mumbai. Advertisement
A government resolution stated that BEST's detailed project report, valued at INR 3,346.29 crore, will be submitted to the central government's Monitoring Committee through the Power Finance Corporation (PFC). The resolution highlighted that Aggregate Technical & Commercial (AT&C) losses remain high, along with the gap between Average Cost of Supply (ACS) and Average Revenue Realized (ARR). Improving operational efficiency and financial sustainability is essential to ensure that consumers receive quality services according to prescribed standards.
The project is part of the central government's Reforms-Based and Results-Linked Revamped Distribution Sector Scheme, a time-bound programme aimed at making distribution companies financially capable while reducing losses. The scheme emphasizes operational efficiency and the provision of reliable, affordable electricity to consumers.
Earlier approvals under a government resolution dated 25th August, 2022, allowed Mahavitaran and BEST to implement similar infrastructure upgrades in their operational areas. According to a Power Finance Corporation letter dated 21st November, 2022, the Centre had already approved projects worth INR 661.64 crore and INR 987.47 crore for BEST's prepaid smart metering and loss-reduction initiatives. These works, totaling INR 1,649.12 crore, are currently in progress.
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