In one of the most ambitious restructuring initiatives in its history, the Brihanmumbai Electricity Supply and Transport (BEST) undertaking has approved an in-principle proposal for a ₹28,000-crore transformation plan aimed at reviving its finances and modernising its public transport system.
Approved by the BEST Committee on Tuesday, August 4, the proposal will now be forwarded to the Brihanmumbai Municipal Corporation (BMC) and subsequently to the Maharashtra Cabinet for administrative and legal approvals.
The centrepiece of the plan is the redevelopment of 22 of BEST's 27 bus depots under the Public-Private Partnership (PPP) model using the Design, Build, Finance, Operate and Transfer (DBFOT) framework. While private developers will undertake the projects, ownership of the land will remain with BEST.
The ageing depots will be transformed into integrated urban hubs that continue to function as operational bus terminals while accommodating commercial and mixed-use developments. The project also includes plans for employee housing, public parking, digital command centres, electric bus charging stations, modern workshops and other civic infrastructure such as educational institutions and healthcare facilities.
BEST owns nearly 7.7 lakh square metres of land across Mumbai. Of its 27 depots, Kurla has already been redeveloped, while Dharavi and Kalakilla depots are earmarked for the Dharavi Redevelopment Project. Anik and Pratiksha Nagar depots have been allocated for the Metro-11 project.
The redevelopment is expected to generate substantial upfront revenue through developer premiums and commercial development rights. BEST intends to use these funds to purchase 5,000 self-owned buses, clear long-pending liabilities, settle dues of retired employees and strengthen its long-term financial position.
According to the undertaking, it currently faces an accumulated deficit of ₹7,322 crore and liabilities worth ₹14,323 crore. An additional ₹13,561 crore will be required to procure the new fleet and fulfil employee-related commitments, taking the total financial requirement to nearly ₹28,000 crore.
To ensure financial sustainability, BEST also plans to establish dedicated Corpus and Recurring Funds, reducing its dependence on annual financial assistance from the BMC.
BEST Committee Chairperson Trushna Vishwasrao said the proposal marks a significant step towards restoring the undertaking's financial health. She noted that the June strike by BEST and wet-lease employees, along with recurring accidents involving wet-lease buses, highlighted the risks of relying heavily on privately operated buses.
The undertaking plans to gradually increase its fleet of self-owned buses, reducing dependence on the current wet-lease model.
To improve the financial viability of the redevelopment, BEST has sought an increase in the permissible Floor Space Index (FSI) from 1.3 to 7, similar to projects along Metro Line 3. It is also seeking Transit-Oriented Development (TOD) benefits for four depots located on the Metro-3 corridor, along with approvals for mixed land use and lease extensions from the Urban Development Department.
The redevelopment strategy was prepared by consultancy firm KPMG after the proposal was presented to Chief Minister Devendra Fadnavis in June.
BEST General Manager Sonia Sethi said the initiative goes beyond redevelopment of land parcels and is designed as a comprehensive transformation of the undertaking. By combining transport infrastructure with commercial development and public amenities, the project aims to unlock the value of prime land assets while creating a sustainable revenue model for the future.
Officials said the redevelopment has drawn inspiration from successful transport-oriented development models adopted in cities such as Singapore, Hong Kong, Paris and Stockholm, with the objective of building a financially stronger and more modern public transport system for Mumbai.