BMC to fund BEST’s electric bus rollout and power revamp with Rs. 2,800 crore boost

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Mumbai bets on green transit and smart power

Brihanmumbai Municipal Corporation (BMC) is set to play a pivotal role in shaping the city’s transition to sustainable public transport and modernised power infrastructure. In its budget estimates for 2025-26, the BMC has outlined a substantial subsidy of Rs. 2,812.03 crore to support critical initiatives spearheaded by the Brihanmumbai Electric Supply and Transport (BEST) undertaking. 

BEST PRO Sudas Sawant said, “Currently, the fleet comprises 3,166 buses, including 2,081 on lease. To modernise the service, 510 ageing buses will be replaced with 273 single-decker and 237 midi air-conditioned electric buses. Orders for 2,100 single-decker electric buses have already been placed, with 205 currently operational. Additionally, 1,200 double-decker electric buses are on order, of which 50 have already been deployed. An order for 2,650 more single-decker electric buses has also been issued. The BEST initiative aims to revolutionise Mumbai’s public transport with an ambitious plan to achieve a 100% zero-emission electric bus fleet by 2026-27.” 

The transformation is aligned with BEST’s target of having over 50% of its fleet electrified by 2025-26 and increasing this to 8,000 electric buses in subsequent years. This shift is expected to drastically reduce carbon emissions and improve air quality across Mumbai, reinforcing the city’s commitment to sustainable urban mobility. 

As part of its efforts to improve passenger convenience and operational efficiency, BEST plans to implement a digital bus platform. This initiative, featuring a Tap-in Tap-out system, driver consoles, and mobile apps for audits and inspections, aims to introduce automated fare collection and enhance the commuting experience. 

In parallel with its transport reforms, BEST is also focusing on upgrading Mumbai’s energy infrastructure under the Central Government’s Revamped Distribution Sector Scheme (RDSS). 

Sawant added, “The scheme, which spans from 2022-23 to 2025-26, has been allocated a project cost of Rs. 972.88 crore. Of this, 60% (Rs. 583.73 crore) will be funded by the Central Government, while the remaining 40% (Rs. 389.15 crore) will be raised through counterpart loans by BEST. The plan includes introducing smart meters across the city to streamline billing and reduce energy distribution losses. Each smart meter will be subsidised at Rs. 900 per unit, with the overall cost pegged at Rs. 677 crore.”  Rs.

Additionally, an Advanced Distribution Management System (ADMS) will be implemented to monitor the electricity supply network more effectively and minimise power outages. Complementing this will be the integration of IT and operational technology systems such as Meter Data Management, Enterprise Resource Planning (ERP), and a call centre facility to enhance customer service and operational transparency. 

He further said, “The transport department alone requires a subsidy of Rs. 2,132.52 crore to cover its operational deficit. A further Rs. 679.51 crore is needed to address capital expenditure shortfalls in upgrading the bus fleet. Combined, the total subsidy of Rs. 2,812.03 crore from BMC highlights its commitment to supporting BEST’s transformative agenda.” 

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