Maharashtra has approved a major expansion of Mumbai’s public transport fleet by allowing the Brihanmumbai Electric Supply and Transport (BEST) undertaking to procure 5,000 self-owned air-conditioned electric buses. The decision marks a strategic shift in the city’s mobility policy, reducing reliance on privately operated contracts while strengthening operational control over one of India’s largest urban bus networks. The proposed investment, estimated at around ₹6,500 crore, represents the first large-scale move towards an owned fleet in more than a decade. Transport planners view the decision as an opportunity to improve service reliability, fleet management and long-term asset ownership while accelerating the transition towards cleaner urban mobility.
The approved programme forms part of BEST’s broader vision to significantly expand its operational capacity over the next few years. The undertaking intends to procure the buses in phases over a three-to-four-year period, with officials expected to prepare a financing framework before placing the proposal before the BEST Committee for final approval. The move is expected to reduce dependence on the wet-lease model, under which private operators own and maintain buses while the transport undertaking pays for operations through long-term service contracts. Although the leasing model enabled faster fleet modernisation, it has also raised questions over operational accountability, maintenance standards and service quality following several safety-related incidents in recent years. Transport analysts believe that a larger BEST electric bus fleet under direct ownership could provide greater flexibility in scheduling, maintenance planning and workforce management. The proposal also includes an assessment of whether drivers currently employed by wet-lease operators can be integrated into BEST’s own workforce, subject to legal and financial evaluation by the relevant government departments.
Funding remains one of the project’s key challenges. Civic officials are examining multiple financing options, including the redevelopment of selected BEST bus depots to unlock land value and generate capital for fleet expansion. However, labour representatives have expressed reservations about monetising depot land, arguing that public transport assets should continue serving operational rather than commercial priorities. The approval does not replace BEST’s existing procurement strategy. The undertaking is simultaneously moving ahead with the induction of 1,500 electric midi buses through the Gross Cost Contract (GCC) model under the PM E-Drive programme. Those buses are expected to operate primarily as feeder services linking residential neighbourhoods with Metro corridors and suburban railway stations, strengthening multimodal connectivity across Mumbai. The expansion of the BEST electric bus fleet comes at a time when the transport undertaking continues to face significant financial pressures. While its electricity distribution business has remained profitable, the transport division continues to record substantial annual losses, highlighting the need for sustainable financing alongside fleet modernisation.
For Mumbai, the transition towards a larger publicly owned electric fleet represents more than a procurement exercise. If supported by reliable charging infrastructure, dedicated bus priority measures and prudent financial planning, the initiative could strengthen low-carbon urban mobility while improving service quality and accessibility for millions of daily commuters.
