Mumbai: In a setback to BEST’s fleet expansion plans, one of its largest wet lease contractors, Olectra Greentech’s subsidiary EVEY, has informed the civic transport undertaking that it will not be able to supply 1,414 air-conditioned electric buses under an existing contract for 2,100 buses signed a few years ago. So far, only 686 buses have been inducted into the fleet. The monumental Rs 3,675-crore deal with Olectra was signed in 2022.Sources in the company said delays in subsidy disbursal played a key role in the decision to pull out. While a subsidy of Rs 15 lakh per bus was sanctioned, it was released for only 10 buses, leaving 676 buses without financial support, sources said. “The prolonged delay in subsidy payments made the contract financially unviable,” sources added.However, a separate agreement for 2,400 non-subsidised buses remains in force. Under this contract, Olectra has supplied 50 buses so far and has proposed a revised rollout plan. The company has assured BEST that it will deliver 50 buses per month initially, scaling up to 100 buses per month within four months, subject to driver availability.The development has once again spotlighted operational challenges within BEST’s wet lease model. With 1,414 buses now unlikely to join the fleet, BEST has moved to plug the gap by fast-tracking a fresh procurement proposal. On Tuesday, the BEST committee cleared a Rs 7,027 crore plan to induct 1,500 AC electric midi buses under a 12-year wet-lease arrangement with central funding support.These 9-metre-long buses, with a seating capacity of 31-35 passengers, will primarily operate on feeder routes connecting Metro stations and other transit hubs to improve last-mile connectivity. The buses will be leased at a contractual rate of Rs 60.25 per km. The contract has been split between Greencell Mobility, which will supply 1,050 buses, and Sai Green Projects, tasked with delivering 450 buses.BEST general manager Sonia Sethi said lessons from past delays were factored in. “We have built safeguards into the new contracts. Around 225 buses will be procured under the Centre’s PM e-Drive scheme with assured subsidy support and are expected to be on roads by January. The lease rates are also competitive,” she said.BEST has been concerned particularly about the acute shortage of trained drivers. Officials acknowledged that while fleet capacity has been expanding, driver recruitment and training have not kept pace. Concerns have also been raised over inadequate training of existing staff, with some drivers reportedly linked to instances of rash driving and fatal accidents in recent months.
