September 2, 2025: The Maharashtra state cabinet has approved the Brihanmumbai Electric Supply and Transport (BEST) undertaking’s plan to seek nearly Rs 3,400 crore from the Centre to modernise its electricity distribution system, aiming to reduce losses and improve supply efficiency.
“The cabinet has decided to recommend submission of the detailed project report worth Rs 3,346.29 crore presented by BEST undertaking to the central govt’s Monitoring Committee through the nodal agency, Power Finance Corporation (PFC), of this scheme,” stated a government resolution (GR) passed during a recent cabinet meeting.
The GR underlined the need to provide consumers with “24×7 uninterrupted, quality, and affordable electricity supply.” It further stated, “The central govt has observed that Aggregate Technical & Commercial (AT&C) Losses as well as the gap between Average Cost of Supply-Average Revenue Realized (ACS-ARR) is high. For this, distribution companies need to focus on improving their ‘Operational Efficiency and Financial Sustainability’ so that customers will receive services as per customer service standards.”
The Centre is implementing a time-bound initiative titled the Reforms-Based and Results-Linked Revamped Distribution Sector Scheme. Its objective is to lower distribution losses, enhance operational efficiency, and ensure financially sustainable power distribution companies that can reliably deliver affordable electricity.
The GR also noted that under a previous approval dated August 25, 2022, projects had already been sanctioned for implementation by Mahavitaran Company and BEST in their operational areas.
According to a letter from Power Finance Corporation Ltd. dated November 21, 2022, “The central govt has approved projects worth Rs 661.64 crore and Rs 987.47 crore, respectively, for BEST undertaking’s prepaid smart metering and reducing distribution losses (including project management committee expenses), totalling Rs 1,649.12 crore. The works of this scheme are already in progress,” the GR added.
Source: The Times of India
