05 August,2026 07:33 AM IST | Mumbai | Rajendra B. Aklekar
The undertaking’s outstanding liabilities remain high, highlighting the urgent need for a sustainable financial model. Representation Pic/Rajendra B Aklekar
With a plan to procure 5000 self-owned buses in the next three years, the Brihanmumbai Electric Supply and Transport (BEST) has proposed a Rs 28,000 crore revival and stability plan to redevelop its ageing bus depots through a public-private partnership-based transit-oriented development (TOD) model, seeking an increase in permissible FSI from about 1.3 to seven. This will be very beneficial to the BEST in pulling it out of financial distress.
While the overall revival plan is Rs 28,000 crore, it requires Rs 16,800 crore to meet demands put up by the trade unions. The plan will be based on a design, build, finance, operate, and transfer (DBFOT) basis, which means 100 per cent of ownership remains with the BEST despite private developers financing and executing the work. Phase I will focus on modernising bus depots and staff quarters, followed by public parking and social infrastructure.
BEST continues to suffer heavy financial losses despite carrying around 74.5 crore passengers annually. FILE PIC
BEST has sought approval from the Maharashtra government for the depot redevelopment programme and the PPP framework, arguing that the initiative would simultaneously modernise Mumbai's bus infrastructure and place the undertaking on a more sustainable financial footing.
It is an urban planning approach that promotes high-density, mixed-use development around public transport hubs, such as railway stations, Metro stations, and bus depots, within a 500-metre radius. Instead of using valuable urban land solely for transport operations, TOD integrates residential, commercial, office and public spaces with transit infrastructure, enabling people to live, work, shop and access services within walking distance of public transport.
A presentation made by BEST General Manager Sonia Sethi outlined a plan to transform old, land-intensive depots into multi-level transport hubs equipped with AI-enabled command centres, automated workshops, smart EV charging infrastructure, staff housing and passenger amenities. The proposal also envisages commercial, residential and public facilities to create sustainable revenue streams for the cash-strapped undertaking. "Once the cabinet approves it, we will take up all the aspects in a detailed manner," Sethi said.
BEST said it has benchmarked successful depot redevelopment models in Singapore, Paris, Birmingham, Hong Kong, and Stockholm, incorporating features such as transit-oriented development, mixed-use planning, smart energy management and AI-enabled depot operations.
According to the presentation, while BEST's electricity distribution business remains profitable, the transport undertaking continues to suffer heavy financial losses despite carrying around 74.5 crore passengers annually. The undertaking's outstanding liabilities remain high, highlighting the urgent need for a sustainable financial model.
The presentation notes that many of BEST's bus depots are over five decades old, suffer from deteriorating infrastructure and inadequate parking capacity, and only a limited number are equipped with electric bus charging facilities. Existing workshops, staff amenities and operational layouts have also been identified as outdated.
Revenue generated through commercial development would be used to create a corpus fund, modernise infrastructure, support staff welfare, improve financial stability and reduce dependence on government grants.
The presentation also highlights financial demands made by 23 recognised labour unions, including procurement of additional buses, staff recruitment, wage revisions, settlement of pending dues and enhancement of retirement benefits.
Accumulated deficit
Rs 7322 cr
Total liabilities
Rs 14,323 cr
Additional financial burden
Rs 13,561 cr
Estimated funds required for stability
Rs 28,000 cr
[popcorn number="July 24" desc="Day meeting with wet-lease operators was held" class="Default"]
[popcorn number="74.5 crore" desc="No of passengers ferried by BEST buses annually" class="Default"]
