BEST gets state nod to buy 5,000 self-owned AC e-buses

Senior BEST officials confirmed on Tuesday that deputy chief minister Eknath Shinde approved the proposal, with the undertaking receiving the official communication during an ongoing BEST committee meeting.

Mumbai: After a decade, the Brihanmumbai Electric Supply and Transport (BEST) undertaking has received the state government’s approval to procure 5,000 self-owned AC electric buses at an estimated cost of ₹6,500 crore, marking a major shift away from its dependence on the wet-lease model.

BEST gets state nod to buy 5,000 self-owned AC e-buses

Senior BEST officials confirmed on Tuesday that deputy chief minister Eknath Shinde approved the proposal, with the undertaking receiving the official communication during an ongoing BEST committee meeting.

“We have received the minutes of the meeting from the deputy chief minister’s office approving the procurement of 5,000 AC e-buses for our owned fleet. The buses will be self-owned, with drivers, as in the past, and will be procured at an estimated cost of ₹6,500 crore,” said Sonia Sethi, general manager, BEST.

The procurement, expected to be completed over the next three to four years, is part of BEST’s long-term plan to build a fleet of 10,000 buses. It is also aimed at reducing dependence on the wet-lease model and strengthening operational control over the city’s bus services.

“We will finalise the most suitable financial model for procuring the buses and place it before the committee in one of its next meetings,” said an official.

At the same time, BEST has sought to examine the possibility of absorbing drivers employed by wet-lease operators into its own workforce. Officials said the proposal will be studied by the Law and Judiciary and Finance departments before a decision is taken.

Officials added that one of the major sources of funding for the procurement could come from redeveloping BEST’s bus depots. A total of 23 depots spread across about 132 acres have been identified for redevelopment.

“We are happy that our long-standing demand for increasing the number of self-owned buses has finally been accepted. The BMC is already funding the procurement of these buses, so we oppose any proposal to lease out bus depot land,” said BEST union leader Shashank Sharad Rao.

The decision comes in the wake of a series of accidents involving wet-lease buses and follows an understanding reached with BEST unions in 2019 to strengthen the undertaking’s owned fleet. Under the existing policy, BEST is expected to maintain an owned fleet of 3,337 buses.

The proposal is separate from BEST’s ongoing plan to induct 1,500 AC electric buses under the wet-lease model. Last month, the BEST Committee approved the induction of 1,500 AC electric midi buses under a 12-year gross cost contract (GCC) at a rate of ₹60.25 per kilometre under the PM E-Drive scheme. The buses are expected to enter service next year.

The 9-metre electric buses will primarily operate as feeder services, connecting residential neighbourhoods with Metro stations and railway stations. Under the GCC model, private operators will supply, maintain and charge the buses, while BEST will determine routes, schedules and fares.

BEST aims to increase its operational fleet to 5,000 buses over the next three years, a target it says is necessary to meet Mumbai’s transport needs. The latest proposal is also in line with its broader goal of expanding the fleet to 7,000 buses by 2027.

As of March 31, 2026, BEST’s cumulative liabilities stood at ₹23,296 crore. While its electricity division posted a surplus of ₹115 crore in 2025-26, the transport division recorded a deficit of ₹1,805 crore.