BEST Undertaking Faces Criticism Over Delayed Electric Bus Deliveries and Increased Operating Costs

Strategic Insights -

Mumbai is on the cusp of its foundation day, and commuters and civil society groups are raising concerns over the Brihanmumbai Electric Supply and Transport (BEST) Undertaking's operations. Notably, the undertaking is plagued by two significant issues: the delay in electric bus deliveries from manufacturers and a substantial increase in operating costs for wet lease operators. BEST had placed orders with Olectra Greentech for 2,100 and 2,400 single-decker electric buses in 2022 and 2024, respectively, but has received only 615 and 50 buses, with 85% of deliveries pending. Experts have questioned the decision to place a second order before fulfilling the first one, and the dissolution of the BEST Committee in 2022 has been cited as a contributing factor. Furthermore, commuters and civil society groups have criticized the 58% hike in operating costs for the second order, which was increased without any change in circumstances or contract conditions.

Key Takeaways:

  • BEST Undertaking has received only 615 out of 2,100 electric buses from the first order with Olectra Greentech, with 85% of deliveries pending.
  • BEST had placed a second order with Olectra Greentech for 2,400 single-decker electric buses in 2024, even though the first order was far from being fulfilled.
  • The wet lease operator for both orders, Evey Trans, has seen a significant increase in operating costs, with a 58% hike from Rs.47-57 per kilometre to Rs.64-79 per kilometre.
  • The increase in operating costs is attributed to a change in contract conditions, despite no change in circumstances.
  • Former BEST Committee member Sheetal Mhatre has termed the 58% hike in operating cost as proof of the failure of the wet lease model.
  • BEST officials blame the dissolution of the BEST Committee in 2022 for the oversight in placing orders and the lack of monitoring over bus supplies.

Statistics:

  • 85% of electric bus deliveries from the first order with Olectra Greentech are pending.
  • 1,485 buses (2,100 - 615) are yet to be delivered from the first order.
  • 58% hike in operating costs from Rs.47-57 per kilometre to Rs.64-79 per kilometre.
  • Rs.50 per kilometre was paid to the wet lease operator for buses under the first contract, while Rs.79 per kilometre was paid for buses under the second contract.
  • BEST pays a subsidy of Rs.1 per bus per year to wet lease operators for charging and parking their vehicles at BEST depots.

Sources:

  • HT Mumbai
  • BEST Undertaking
  • Olectra Greentech
  • Evey Trans
  • Mumbai Mobility Forum
  • HT Digital Content Services