Evey Trans Delivers Only 32% of E-Bus Order; BEST Withholds Subsidies
Evey Trans, a subsidiary of Olectra Greentech, has delivered only 686 out of 2,100 electric buses ordered by the Brihanmumbai Electric Supply and Transport (BEST) Undertaking under a 2022 contract. The Rs 3,675-crore contract, signed under the Gross Cost Contract (GCC) model for 12 years, required Evey Trans to supply the buses. Four years later, the company has fulfilled just 32.7% of the order, leaving 1,414 buses undelivered.
A senior BEST official confirmed that the non-disbursal of state government subsidies for the buses is due to Evey Trans's failure to submit mandatory bank guarantees. The official stated that despite delivering 686 buses over the past four years, Evey Trans has submitted bank guarantees for only 10 buses. Consequently, BEST has disbursed subsidies worth Rs 1.5 crore solely for those 10 buses.
In a separate development, Evey Trans has reaffirmed its commitment to honour a 2024 agreement with BEST for the supply of 2,400 electric buses starting in August 2026. That contract remains unaffected by the current shortfall. The company has not commented on the reasons for the delay in submitting bank guarantees or on the timeline for completing the 2022 order.
The 2022 contract was part of BEST's initiative to electrify its fleet and reduce pollution in Mumbai. BEST has faced challenges in meeting its targets, with several contractors struggling to deliver on time. The non-disbursal of subsidies further complicates the financial viability of such projects for operators.
Observers note that the lack of bank guarantees raises questions about Evey Trans's financial capacity. BEST, meanwhile, is exploring options to enforce the contract terms or seek alternative suppliers to meet its electrification goals.
