Amid rising deficit, BEST seeks Rs 679 cr for electric bus fleet expansion

By 2025-26, BEST plans to have more than 50% of its fleet as electric, with the number rising to 8,000 in the coming years.

BEST is also moving toward a zero-emission future, aiming to transition its fleet entirely to electric buses by 2026-27. Currently, its fleet comprises 3,166 buses, including 2081 on wet lease. The organisation has issued work orders for 2,100 single decker electric buses, of which 205 have already been delivered. As many as 50 of the 1,200 planned double-decker electric buses are operational. BEST has also placed an order for 2,650 more single decker electric buses.

These ambitious plans come amid increasing financial challenges. BEST is projecting a transport division deficit of Rs 2,132 crore for 2025-26.

The cumulative liability of BEST, covering loans, losses, and borrowings, now stands at Rs 9,286 crore, a significant rise from Rs 6,400 crore two years ago.

The annual loss for FY 2025-26 is estimated at nearly Rs 2,200 crore, despite BEST electricity department projecting a nominal surplus of Rs 1 lakh in its budget.

The shrinking fleet size is another pressing concern due to which BEST faces difficulties in maintaining service quality.

BEST’s financial strain is exacerbated by delays in receiving funds. In FY 2024-25, the BMC allocated Rs 928 crore, of which Rs 800 crore was disbursed for infrastructure development.

The remaining Rs 128 crore, designated for the procurement of electric buses, is yet to be paid. Officials warn that further delays could disrupt fleet expansion plans.

To enhance operational efficiency, BEST has planned to roll out a digital bus platform featuring “tap-in tap-out” systems, driver consoles, and video auditing tools.

In addition to the transport department, the electricity department has proposed several upgrades. These include the implementation of a revamped distribution sector scheme, the introduction of an advanced distribution management system, and the integration of operational technology through IT advancements.