Fleet expansion and technology upgrades take centre stage, but concrete roadmap to contain mounting losses remains unclear

MUMBAI: The Brihanmumbai Electric Supply and Transport (BEST) undertaking has projected a combined deficit of 1,317.50 crore for 2027-28, with the transport division alone expected to incur a staggering 1,518.71 crore loss.

The figures have once again brought BEST’s financial sustainability into focus, even as the undertaking has proposed an ambitious expansion of its bus fleet, deployment of new technology and modernisation of its transport and electricity operations.

BEST General Manager (additional charge) and Additional Municipal Commissioner (City) Prajakta Verma presented the budget estimates for 2027-28 at a meeting chaired by BEST Committee chairperson Trishna Vishwasrao.

According to the budget, the electricity division is expected to generate revenue of 5,007.51 crore against expenditure of 4,806.30 crore, leaving a surplus of 201.21 crore. In sharp contrast, the transport division has estimated revenue of 3,551.55 crore against expenditure of 5,070.26 crore, resulting in a deficit of 1,518.71 crore.

Taken together, BEST’s projected revenue stands at 8,559.06 crore, against expenditure of 9,876.56 crore. The undertaking has provided 647.79 crore for capital expenditure.

Fleet to rise to 4,016 buses

The transport budget proposes a phased expansion of the fleet. As of September 2026, BEST had 2,834 buses, which the undertaking plans to increase to 4,016.

Under the Centre’s PM E-DRIVE scheme, BEST plans to procure 1,500 midi buses, while tenders are proposed for another 200 midi CNG buses. In the longer term, the undertaking has set an ambitious target of taking its fleet to 10,000 buses.

The budget also proposes an Integrated Transport Management System (ITMS), real-time passenger information, bus tracking, mobile ticketing, a central command and control centre and ONDC-based multi-app ticketing.

However, the budget does not clearly spell out how much additional revenue these initiatives are expected to generate or how much expenditure they would save.

The proposed increase in fleet size would also mean higher expenditure on fuel, maintenance, salaries of drivers and conductors, insurance and other operational requirements. The key question, therefore, is whether the projected growth in passenger and fare revenue will be sufficient to offset these additional costs.

Focus on RDSS in power division

The electricity division has proposed several infrastructure projects under the Centre’s Revamped Distribution Sector Scheme (RDSS).

These include replacement of power transformers and circuit breakers, installation of vacuum circuit breakers and ring main units, replacement of 33-kV and 11-kV cables, construction of new substations and development of an Advanced Distribution Management System (ADMS).

BEST also plans to accelerate IT projects covering meter data management, billing, ERP and a 24-hour call centre. While such investments are aimed at improving operational efficiency, the budget provides limited clarity on the precise savings or additional revenue expected from them.

Technology push, but transport deficit remains the core challenge

The budget also provides for a Security Operations Centre (SOC) and ISO 27001 certification to strengthen cyber security amid increasing digitisation.

While technology and cyber security investments are increasingly necessary, BEST’s immediate financial challenge remains the widening transport deficit.

The budget does not provide a clearly defined, year-wise roadmap for reducing the 1,518.71-crore transport loss, including measurable targets for revenue growth, expenditure control and monitoring of implementation.

The BEST Committee will therefore face the challenge of balancing fleet expansion and technological modernisation with financial discipline. As the undertaking moves towards the 4,016-bus target and eventually a 10,000-bus fleet, the crucial question will be how the additional operational costs will be funded and how dependent BEST will remain on government and centrally sponsored schemes.

The success of the 2027-28 budget will ultimately depend not merely on expanding services, but on whether BEST can translate that expansion into higher revenue, controlled expenditure and a sustainable reduction in its transport losses.