Daijiworld Media Network- Mumbai

Mumbai, Sep 2: In a major step towards modernising Mumbai’s power distribution system, the state cabinet has approved Brihanmumbai Electric Supply and Transport (BEST) undertaking’s proposal to seek financial assistance of approximately Rs 3,400 crore from the Centre to revamp and strengthen its electricity infrastructure.

According to the government resolution (GR) passed in the recent cabinet meeting, the detailed project report worth Rs 3,346.29 crore will be submitted to the Centre’s Monitoring Committee through the nodal agency, Power Finance Corporation (PFC).

The initiative aims at ensuring consumers receive uninterrupted, reliable, and affordable 24x7 power supply while addressing high Aggregate Technical & Commercial (AT&C) losses and narrowing the gap between Average Cost of Supply and Average Revenue Realized (ACS-ARR).

The project is part of the Centre’s Reforms-Based and Results-Linked Revamped Distribution Sector Scheme, designed to enhance operational efficiency, reduce losses, and strengthen the financial sustainability of power distribution companies.

Earlier, under the same scheme, the Centre had approved projects worth Rs 661.64 crore and Rs 987.47 crore for BEST’s prepaid smart metering and distribution loss reduction initiatives, totalling Rs 1,649.12 crore. The implementation of these works is already in progress, officials said.

The government emphasised that the reforms are critical to improving consumer service standards while making Mumbai’s power distribution infrastructure future-ready.