BEST Buses Go Green: Rs 2,812 Crore Request To Boost Electric Fleet By 2026

The Brihanmumbai Electricity Supply and Transport (BEST) undertaking has outlined an ambitious plan to operate a fleet of 8,000 buses by the end of March 2026, according to Hindustan Times (HT) report. To achieve this, BEST has requested a grant of Rs 2,812 crore from its parent body, the Brihanmumbai Municipal Corporation (BMC). This request forms a key part of BEST's annual budget for FY2025-26, which was presented to the BMC on Thursday. Notably, for the first time, BEST has not made the details of its budget public.

Currently, BEST operates a fleet of just 2,913 buses, a mix of owned and leased vehicles. The undertaking plans to significantly boost this number, with half of the fleet initially set to run on electricity. BEST aims for an entirely electric fleet by 2026-27, as outlined in the budget document.

Photo Credit: PTI

However, the budget also reflects financial challenges, with BEST forecasting a loss of Rs 2,086.34 crore for FY2025-26. Projected revenues for the year stand at Rs 7,307.04 crore, while expected expenditure is Rs 9,393.37 crore. Furthermore, BEST has a total cumulative liability of over Rs 9,286 crore, up from Rs 6,400 crore two years ago, covering both its transport and electricity supply divisions.

To meet its fleet expansion goals, BEST has already placed orders for 200 double-decker A/C electric buses with Switch Mobility, though only 50 have been delivered so far. The remaining buses are delayed due to rising manufacturing costs. Additionally, BEST is facing challenges with Olectra Greentech in procuring 2,100 single-decker e-buses, having received only 300 to date. BEST's General Manager, Anil Diggikar, has called a meeting with the manufacturers next week to resolve the issues, the report added.

The undertaking has also proposed adding 1,200 double-decker A/C e-buses, 2,100 single-decker A/C e-buses, and 2,650 single-decker e-buses to its fleet. While 2,400 single-decker e-buses were initially planned, this part of the procurement is currently on hold.

BEST's current fleet consists of 1,013 owned buses, making up 34.77 per cent of its total fleet, while the remaining 1,900 buses are leased. The plan to increase the number of owned buses is expected to help meet the target of 3,337 owned buses in the fleet.

To fund these ambitious plans, BEST is looking for financial support from both domestic and global institutions, as well as the Rs 2,812 crore grant from the BMC. A BEST official noted that it is now up to the government to decide the amount of funding to allocate to ensure the undertaking's sustainability.

Last year, the BMC agreed to provide Rs 928 crore to BEST, of which Rs 128 crore remains unpaid. BEST officials have indicated that the remaining balance will be disbursed soon, following Thursday's budget presentation. The largest grant received by BEST from the BMC was Rs 1,600 crore in 2012, with the sum typically hovering around ₹800 crore in recent years.

As part of the budget, BEST plans to scrap 510 old buses in 2025-26. In their place, they aim to procure 273 A/C single-decker e-buses and 237 A/C Midi e-buses, for which they have requested Rs 679.51 crore from the BMC as part of the overall Rs 2,812 crore grant.