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To rely less on wet-lease model, BEST approves Rs 28,000-crore ‘Kayapalat’ plan
The redevelopment plan includes commercial and mixed-use projects, public parking facilities, employee housing, digital command centres, electric bus charging infrastructure and modern workshops.
BEST plans to seek transit-oriented development (TOD) benefits for four depots along Metro Line 3 and approvals for mixed land use and lease extensions from the Urban Development Department.
In an attempt to revive the loss-making undertaking, the BEST Committee on Tuesday gave in-principle approval to a Rs 28,000-crore plan to redevelop 22 bus depots under the public-private partnership (PPP) model and use the proceeds to expand its self-owned bus fleet, instead of relying on the wet-lease buses that it hires from private operators.
The proposal, titled ‘Kayapalat’ (transformation), envisages phased redevelopment of 22 depots to generate revenue through upfront premiums and commercial development. BEST plans to use the funds to procure 5,000 self-owned buses, settle pending dues of retired employees, and reduce its accumulated debt.
“The recent strike by BEST and wet-lease employees in June, along with recurring accidents involving wet lease buses, is an eye-opener that we can no longer solely depend on wet-lease buses to sustain BEST’s transport network. This proposal is a major step towards overcoming the undertaking’s financial crisis,” BEST Committee Chairperson Trushna Vishwasrao said.
The committee approved the proposal after a presentation by BEST General Manager Sonia Sethi. It will now be sent to the Brihanmumbai Municipal Corporation (BMC) and subsequently to the Maharashtra Cabinet for administrative and legal clearances.
According to BEST, the undertaking currently has an accumulated deficit of Rs 7,322 crore and liabilities of Rs 14,323 crore. It estimates an additional requirement of Rs 13,561 crore to procure 5,000 buses and implement wage commitments made during the June strike, taking the total financial requirement to about Rs 28,000 crore.
The redevelopment plan includes commercial and mixed-use projects, public parking facilities, employee housing, digital command centres, electric bus charging infrastructure and modern workshops.
BEST also plans to seek transit-oriented development (TOD) benefits for four depots along Metro Line 3, and approvals for mixed land use and lease extensions from the Urban Development Department.
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Separately, the committee approved the induction of 1,500 electric air-conditioned midi buses under the Centre’s PM E Drive scheme. The buses will be procured on a 12-year wet-lease basis, with 1,050 to be supplied by GreenCell Mobility and 450 by Sai Green Pvt Ltd. BEST said the induction, scheduled over 2026 and 2027, will enable the launch of 125 new routes, taking the total network to 525 routes.
The committee also approved a monthly wage increase of Rs 3,000 for permanent employees and Rs 2,000 for wet lease employees, in line with assurances made by Deputy Chief Minister Eknath Shinde during negotiations that ended the June strike.
In addition, BEST announced a Rs 99 annual bus pass for retired employees. The pass, to be launched on August 7, BEST Foundation Day, will be renewed by adjusting the amount against pending gratuity dues.
© The Indian Express Pvt Ltd
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