22 BEST depots to be revamped to fund ₹28k-crore revival

The plan seeks to transform ageing depots across the city into modern, integrated hubs with commercial, residential and social infrastructure

Mumbai: The Brihanmumbai Electric Supply and Transport (BEST) Committee on Tuesday approved an ambitious plan to revive the cash-strapped undertaking by redeveloping 22 of its 27 bus depots into mixed-use urban hubs. The proposal will now be sent to the Brihanmumbai Municipal Corporation (BMC) and, subsequently, to the state cabinet for approval.

BEST owns bus depots spanning across 190 acres. Of these, 22 depots covering 132 acres will undergo redevelopment as part of the proposed overhaul. (Bhushan Koyande/HT Photo)

The plan, first presented to chief minister Devendra Fadnavis in June, seeks to transform ageing depots across the city into modern, integrated hubs with commercial, residential and social infrastructure, while generating revenue to fund BEST’s revival.

BEST estimates it requires nearly ₹28,000 crore to achieve financial stability. Of this, around ₹14,323 crore is needed to clear existing liabilities, while another ₹13,561 crore would be required to procure and operate 5,000 BEST-owned buses and meet employee-related commitments.

The undertaking owns bus depots spanning across 771,000 square metres or about 190 acres. Of these, 22 depots covering 132 acres will undergo redevelopment as part of the proposed overhaul. The Kurla depot has already been redeveloped, while the Dharavi, Kalakilla, Anik and Pratiksha Nagar depots are being handed over for the Dharavi Redevelopment Project and the Metro 11 corridor.

“The redevelopment of bus depots is part of the overall transformation of BEST. We have demanded a higher FSI (floor space index) of 7, which has been provided to Metro 3, against the existing 1.3 FSI. This will help in revenue generation. Moreover, the plan is not just to have residential and commercial buildings but to create spaces such as educational institutes, medical facilities, parking spaces for vehicles and social infrastructure on the depot land,” said BEST general manager Sonia Sethi.

The redevelopment will be carried out through the Design, Build, Finance, Operate, and Transfer (DBFOT) model under a public-private partnership (PPP), with land ownership remaining with BEST. The proposal had sparked controversy when it was first discussed in June, with opposition parties and BEST employee unions expressing concern that prime public land could eventually be handed over to private developers. The state government, however, has maintained that the land will not be sold and that ownership will remain with BEST.

Officials said the proposal draws on transport-oriented developments in cities such as Stockholm, Singapore, Hong Kong, and Paris, where transport infrastructure is integrated with commercial, residential and public amenities. Existing depots will continue to function as operational bus facilities while also accommodating schools, hospitals, sports auditoriums, commercial establishments, affordable housing, public parking facilities and other social infrastructure.

“The modernisation of BEST is needed for its transformation. Such mixed-use development would maximise the value of prime land parcels owned by BEST across Mumbai, while creating neighbourhood facilities for our staff through better staff quarters, creating parking lots for 10,000 BEST buses and other amenities,” said BEST committee chairperson Trushna Vishwasrao.

According to the proposal, the upfront premium received from developers will be utilised to settle pending liabilities, clear dues of retired and serving employees, and fund the acquisition and operation of BEST-owned buses. The undertaking has also proposed establishing a dedicated corpus fund and a recurring fund to ensure long-term financial sustainability.

The redevelopment model has been designed to reduce dependence on repeated financial assistance from the BMC by creating sustainable revenue streams from underutilised land assets, officials said. Revenue from commercial development is also expected to provide a stable source of income for the undertaking’s future operations and maintenance. Several depots are expected to incorporate well-equipped public parking facilities, as well as improved bus maintenance infrastructure and staff quarters, officials said.

The proposal envisages phased execution, with priority being given to the modernisation of bus depots and staff housing. Officials said retaining ownership of depot land with BEST was a key feature of the plan, ensuring that the undertaking continues to control its land assets.