Brihanmumbai Electric Supply and Transport

1865–1873: Early proposals

The idea of a mass public transport system for Bombay was first put forward in 1865 by an American company, which applied for a licence to operate a horse-drawn tramway system. Although a licence was granted, the project was never realized due to the prevailing economic depression in the city brought on by the end of the American Civil War, during which Bombay had made vast strides in its economy by supplying cotton and textiles to the world market. The tender was abandoned in 1871.

1873–1905: Bombay Tramway Company Limited, introduction of horse-drawn trams

The Bombay Tramway Company Limited (BTC) was formally set up in 1873. After the signing of a contract between BTC, the municipality, and Stearns and Kitteredge, the Bombay Presidency enacted the Bombay Tramways Act, 1874, under which the company was licensed to run a horsecar tramway service in the city. On 9 May 1874, the first horse-drawn tram made its debut, plying the Colaba–Pydhone route via Crawford Market, and Bori Bunder to Pydhonie via Kalbadevi. The initial fare was three annas (15 paise), and no tickets were issued. As the service became increasingly popular, the fare was reduced to two annas (10 paise). Later that year, tickets were issued for the first time to curb increasing ticketless travel. Stearns and Kitteredge reportedly had a stable of 900 horses when tram service began.

In 1882, the municipality entered into an agreement with the Eastern Electric Light and Power Company to provide electric lighting in the Crawford Market and on some roads. The company went into liquidation the following year, however, and the market reverted to gas lighting. In 1899, BTC applied to the municipality for operation of electrically operated trams. Due to the high investment required, the company suggested that the Bombay Municipal Corporation (BMC) should waive its right to take over the tramways, which was to take place in 1901 according to the Bombay Tramways Act. Instead, the BMC decided to take over the company but was met with several legal problems. In 1904, the British Electric Traction Company applied for a license to supply electricity to the city. The Brush Electrical Engineering Company was its agent. It got the "Bombay Electric License" on 31 July 1905 signed by BTC, the Bombay municipality, and its agent, the Brush Electrical Company.

1905–1947: Bombay Electric Supply & Tramway Company Limited, introduction of electric trams and buses

In 1905, the Bombay Electric Supply & Tramway Company Limited (BEST) was formed and was granted a monopoly for electric supply and the running of an electric tram service in the city. It bought the assets of the Bombay Tramway Company for ₹9,850,000. Two years later, in 1907, the first electric tram debuted in the city. Later that year, a 4,300 kilowatts (5,800 hp) steam power generator was commissioned at Wari Bunder. In 1916, the Tata Power group began purchasing power, and by 1925, all power generation was outsourced from Tata. The passing years aggravated the problem of rush-hour traffic, and to ease the situation, double-decker trams were introduced in September 1920.

Since 1913, the company had been considering starting a motorised bus service. The main factor against its introduction was the high accident rate for a similar service in London. After years of debate, the company came to a decision on 10 February 1926 to start a bus service later that year. Bombay saw its first bus run on 15 July 1926, between Afghan Church and Crawford Market. Despite stiff opposition and protests by taxi drivers, the service ran without a hitch, transporting 600,000 passengers by the end of that year. The following year, the number had increased to 3.8 million. In response to pleas by the government and the Bombay Municipal Corporation, the company extended its services to the northern part of the city in 1934. The Indian independence movement's call for mass nonviolent strikes and general civil disobedience led to regular service disruptions, causing the company to incur huge losses in 1929. The following year was a particular bad one for the company, in the wake of the Great Depression. To remain solvent, it decided to introduce discounted fares for short routes and increase its coverage to the northern portions of the city. In 1937, the introduction of double-decker buses proved extremely popular.

1947–1995: Bombay Electric Supply & Transport, further expansion

Pursuant to the option given to it under the deed of concession granted to the Bombay Electric Supply and Tramways Co. Ltd, the BMC acquired the assets of the combined undertaking, namely the operation of tramways and distribution of electricity in the city of Bombay as a going concern on 7 August 1947. By mutual agreement, the corporation also took over the operation of bus services, which were run by the Bombay Electric Supply & Transport Company. Thus, the Bombay Electric Supply & Tramways Company was renamed Bombay Electric Supply & Transport.

As the company grew, it increased its fleet from 242 to 582 buses over the next decade. In 1949, it took over the Bandra Bus Company, which used to operate in Bombay's suburbs. In 1951, the electricity division switched over from direct current (DC) to the more efficient alternating current (AC). The company launched its services in the eastern suburbs in 1955. That year, the undertaking and private operators went to court with BEST, asking for a complete closure of the private companies. The case dragged on for four years before the Supreme Court of India granted the organisation a complete monopoly over bus services in the Greater Bombay area. In 1964, due to high operational costs and poor public support, its long-running tram services were terminated. The company became the first in the country to issue computerised billing in 1974. In 1994, it introduced electronic meters in a move to replace the less accurate electric meters.

A notable chairman of BEST during the 1970s was Kisan Mehta, who was known for his social activism.