September 3, 2025: In a significant move to modernise Mumbai’s electricity distribution system, the Maharashtra cabinet has approved Brihanmumbai Electric Supply and Transport’s (BEST) proposal to seek financial assistance of approximately Rs 3,400 crore from the Centre for an extensive power infrastructure upgrade.
According to a government resolution (GR) passed during the recent cabinet meeting, a detailed project report worth Rs 3,346.29 crore will be submitted to the Centre’s Monitoring Committee through the nodal agency, the Power Finance Corporation (PFC).
The initiative is aimed at providing consumers with uninterrupted, reliable, and affordable round-the-clock electricity, while tackling high Aggregate Technical and Commercial (AT&C) losses and bridging the gap between the Average Cost of Supply (ACS) and Average Revenue Realised (ARR).
This project falls under the Centre’s Reforms-Based and Results-Linked Revamped Distribution Sector Scheme (RDSS), which is designed to improve operational efficiency, reduce distribution losses, and ensure the financial sustainability of power utilities across the country.
Earlier, under the same scheme, the Centre sanctioned projects worth Rs 661.64 crore and Rs 987.47 crore for BEST’s prepaid smart metering initiative and its distribution loss reduction programme, respectively, totalling Rs 1,649.12 crore. These projects are currently under implementation, officials confirmed.
State officials highlighted that the reforms are vital for strengthening consumer service standards and making Mumbai’s electricity distribution system future-ready. They noted that sustained investment in modern power infrastructure would also play a key role in meeting the energy demands of a rapidly growing city.
By securing support for the Rs 3,400-crore project, BEST aims to significantly upgrade its network, enhance efficiency, and ensure that Mumbai’s residents and businesses have access to high-quality, reliable electricity supply for years to come.
Source: Daijiworld
