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BEST Buses: Subsidy Snag Halts Crucial Electric Fleet Expansion
1 Jun
Summary
- First bus order stalled by subsidy and legal issues for three years.
- Second order deliveries underway, targeting 1,000 buses by year-end.
- BEST's fleet comprises 2,870 buses, with most on wet lease contracts.
Mumbai's public transport operator, BEST, is navigating challenges in expanding its electric bus fleet. Deliveries for a significant second order are underway, with Olectra Greentech aiming to supply close to 1,000 buses by the end of 2026. So far, 49 buses from this order have reached BEST.
The initial order, awarded in 2022 with a value of approximately ₹3,675 crore, has faced prolonged disruptions. Despite starting deliveries in June 2022, the project encountered nearly three years of legal disputes and subsequently, issues with subsidy availability. Olectra has only managed to supply 685 buses under this contract.
Mahesh Babu, MD and CEO of Olectra Greentech, stated that supplies for the first contract cannot resume until these subsidy-related issues are resolved. Both major orders have been placed on a gross cost contract (GCC) basis, with Evey Trans entities managing operations.
BEST is diversifying its electric fleet, which also includes buses from Tata Motors and PMI mobility. Further additions are expected from EKA mobility and another manufacturer. The current BEST fleet totals 2,870 buses, with the vast majority operating under wet lease arrangements.
