Mumbai: BEST approves 1,500 electric midi buses under PM E-Drive as Olectra supply crisis clouds 2,400-bus contract

File pic

Mumbai's public transport network is set for a major fleet expansion after the BEST Committee on Tuesday approved the process to procure 1500 electric midi buses. The 9-metre buses, designed for narrow roads and inner-city routes, will be acquired under the Centre's PM E-Drive Scheme and are expected to enter service from next year.

The approval comes amid a major setback for BEST, with electric bus manufacturer Olectra Greentech deciding to discontinue supply of most buses under an existing contract, citing financial and operational issues.

How the Gross Cost Contract model works

Private operator will

• Supply buses
• Maintain buses
• Charge buses
  

BEST will

• Decide routes
• Fix schedules
• Collect fares
• Operate services

Olectra's version

EveyTrans, Olectra's operating arm, said the issue stems from an earlier 2100-bus contract.

According to the company

• It supplied 686 buses under the 2100-bus contract
• A subsidy of R15 lakh per bus was envisaged
• Subsidy has allegedly been received for only 10 buses
• The resulting financial burden made further deliveries unviable

Company speak
"EveyTrans has supplied 686 buses under the contract, and subsidy payments have been received for only 10 buses to date."
EveyTrans statement

What Olectra has proposed
The company has proposed:
. Deliveries under the 2400-bus contract from August 2026
. Initial supply of 50 buses per month
. Gradual increase to 100 buses per month
. Use of the charging infrastructure already created for both contracts

The Olectra setback

While BEST has approved a fresh fleet, it simultaneously faces uncertainty over a much larger electric bus order.

What happened?

BEST said Olectra Greentech has decided to discontinue supply of the remaining buses under an accepted 2,400-bus contract due to disputes over costs and other disagreements.

The numbers

• 2400 Total buses under contract
• 50 Buses supplied so far
• 2350 Buses unlikely to be supplied under the current arrangement

Gateway bus stop row sparks debate
The committee meeting also witnessed sharp exchanges over a proposal linked to shifting BEST bus stops away from the Gateway of India area following a suggestion by Maharashtra Legislative Assembly Speaker Rahul Narwekar.

Voice of opposition

Nitin Nandgaonkar, BEST committee member
"It is unfair that such a proposal that affects the common man has been moved in the committee. It is a very popular bus stop, and it is a shame that such a proposal has been mooted, which not only affects the common man, but also the revenue of the undertaking."

BEST chairperson

Trushna Vishwasrao, BEST chairperson, responds, "We are leaving the decision to the administration and not making any decision. It is unfair to level such allegations."

What was approved?

• 1500 new electric midi buses
• Bus size: 9 metres
• Suitable for narrow roads and congested routes
• Cost: Rs 60.25 per km
• Contract period: 12 years
• Model: Gross Cost Contract (GCC)/wet lease
• Expected rollout: From 2027