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Mumbai’s BEST Undertaking faces a setback to its electric fleet expansion after EVEY Trans informed the transport body that it will not supply the remaining 1,414 buses under a 2,100-bus contract awarded in 2022. The company cited issues related to state subsidy payments linked to the project. BEST has received 686 buses so far under the agreement, valued at about INR 3,675 crore. The development affects one of Mumbai’s largest electric bus procurement programmes.
The Brihanmumbai Electric Supply and Transport (BEST) Undertaking has been informed by EVEY Trans Pvt Ltd that the company will not supply the remaining 1,414 electric buses under a 2,100-bus contract awarded in 2022, citing issues related to subsidy payments associated with the project. The decision was communicated to BEST in the past week and affects one of Mumbai’s largest electric bus procurement programmes.
EVEY Trans, a subsidiary of Olectra Greentech, had secured the contract to supply, operate and maintain 2,100 air-conditioned electric buses for BEST under a wet-lease arrangement. The agreement, valued at approximately INR 3,675 crore, formed a key component of the transport undertaking’s strategy to expand its electric fleet while reducing dependence on diesel-powered buses. Under the contract, private operators are responsible for vehicle procurement, maintenance and operational expenses, while BEST compensates them on the basis of kilometres operated.
According to information presented before the BEST committee, only 686 buses have been delivered under the contract so far. EVEY Trans has stated that it will not proceed with the balance fleet after receiving subsidy support for only a small portion of the buses already supplied. Company representatives indicated that the project had been structured on the expectation of receiving a state subsidy of INR 15 lakh per bus through BEST. However, subsidy payments were reportedly received for only 10 buses, leading the company to discontinue participation in the remaining portion of the contract.
The withdrawal follows several years of delays in bus deliveries under the agreement. The contract had been viewed as one of the largest electric bus orders awarded by BEST and was expected to support the undertaking’s broader fleet modernisation programme.
The development comes as BEST continues to pursue additional electric bus acquisitions. In the past week, the BEST Committee approved plans to induct 1,500 air-conditioned electric midi buses through the wet-lease model under the Centre’s PM E-Drive Scheme. The proposed procurement is expected to attract central assistance of approximately INR 375 crore and forms part of ongoing efforts to expand electric public transport services across Mumbai.
BEST has also awarded a separate contract for 2,500 electric buses to EVEY Trans under a gross cost contract model, valued at around INR 4,000 crore. Deliveries under that order have commenced, although the status of future implementation will be closely monitored in light of the latest contract dispute.
The loss of 1,414 buses from the 2022 contract creates a gap in BEST’s planned fleet augmentation programme and underscores the financial and administrative challenges associated with large-scale electric mobility projects that rely on government incentive mechanisms and long-term operating agreements.
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