BMC House clears redevelopment of 22 BEST depots under PPP model

Tabled as an urgent business motion, the proposal was cleared at around 12.35 am following more than two hours of debate. The BEST committee had given its in-principle approval on August 4

MUMBAI: The BMC general body on Wednesday night cleared a proposal to redevelop 22 of BEST’s 27 bus depots under a public-private partnership (PPP) model. Tabled as an urgent business motion, the proposal was cleared at around 12.35 am following more than two hours of debate. The BEST committee had given its in-principle approval on August 4.

Photo for representation (HT Photo)

As reported by HT on August 5, the ambitious plan was chalked out to revive the cash-strapped undertaking by redeveloping the bus depots into mixed-use urban hubs. The redevelopment is part of BEST’s ₹28,000-crore “turnaround” revival and modernisation plan. The 22 depots, spread across nearly 132 acres, are proposed to be developed under a Design-Build-Finance-Operate-Transfer (DBFOT) model, with commercial development intended to generate revenue for the financially stressed undertaking.

“We are not selling or giving them away. We are leasing them. We have earlier also given plots on 999-year leases,” said Trushna Vishwasrao, chairperson of the BEST Committee.

BEST general manager Sonia Sethi said the redevelopment was necessary to modernise the undertaking, including upgrading depots, introducing charging infrastructure and improving amenities. “We want 10,000 buses. Modernisation is important but we do not have the resources. How do we fund this modernisation?” she asked.

Sethi added that around 10,000 tenements would be developed for BEST employees. Trushna Vishwasrao added that ₹500 crore towards gratuity had already been released and would be used for gratuity payments.

The proposal, however, faced strong opposition in the House. Sena (UBT) corporator Yashodhar Phanse questioned the valuation of the properties at ₹28,000 crore and warned against “privatising” BEST’s assets. He argued that the shift towards private wet-lease buses had already raised concerns over accidents, and said that PPP redevelopment could worsen the situation.

Congress group leader Ashraf Azmi urged the BMC to develop the depots itself instead of handing them to private players. Opposition members also demanded a white paper on earlier attempts to privatise or commercially develop BEST depots since 2007, questioning what the undertaking had gained from those initiatives.