BEST To Procure 1,500 AC Electric Feeder Buses Under PM E-Drive Scheme To Boost Last-Mile Connectivity In Mumbai

Mumbai: Even as BEST has received only around 50 buses from its earlier order of 2,400 electric buses placed with Olectra Greentech, with the remaining vehicles unlikely to be delivered, the undertaking has approved the procurement of 1,500 new air-conditioned (AC) electric feeder buses that are expected to begin entering service next year.

The nine-metre-long midi buses will be procured under the Centre’s PM E-Drive Scheme at a wet-lease rate of ₹60.25/km (amount to be paid to the contractor). Implemented by the Union ministry of heavy industries, the scheme will provide BEST financial assistance of ₹25 lakh for each bus, taking the total subsidy to nearly ₹375 crore. Sources said the contract for operating the fleet over 12 years could exceed `7,000 crore.

BEST has already awarded contracts for 4,500 AC ebuses. Of these, 774 are currently in service, while nearly 3,700 more are expected to be delivered before the end of the financial year.

The undertaking currently operates around 2,766 buses, though officials estimate that Mumbai requires nearly 10,000 buses to meet the needs of its growing population and expanding public transport network. BEST aims to increase its fleet strength to 7,000 buses by 2027.

The new buses are intended to strengthen lastmile connectivity between residential areas, Metro stations, railway stations and other transit hubs. Their smaller size will allow them to operate more efficiently than conventional buses on narrow roads and congested internal lanes.

A senior BEST official said further deliveries from Olectra’s earlier order were not expected because of disputes over pricing and other contractual issues.

The 1,500 buses will be inducted under a Gross Cost Contract, also known as the wet-lease model. Private operators will supply, maintain and charge the buses, while BEST will determine routes, schedules and fares.

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Published on: Wednesday, June 24, 2026, 03:01 PM IST