Archive · 2 Jun 2025
Maharashtra Minister Orders Cancellation of Electric Bus Contract
The Maharashtra government is considering canceling a contract with Olectra Greentech for electric buses because the company missed a delivery deadline.
The transport minister announced the potential cancellation after the company failed to deliver any buses by the revised date.
Although the company claims they haven't received a formal cancellation notice, the stock price dropped.
The initial contract was for thousands of buses, and the company is currently operating under a special purpose vehicle with Evey Trans Pvt.
Ltd.
Meanwhile, Olectra Greentech's recent financial results showed strong revenue and profit growth, but investors are worried about the contract situation.
A significant portion of the company's shares are held by small shareholders.
Maharashtra's Transport Minister directed officials to cancel an electric bus contract with Olectra Greentech.
The contract was for 5,150 electric buses, with a revised deadline of May 22.
Olectra Greentech failed to deliver 1,000 buses by the deadline.
Olectra Greentech's stock fell after the announcement but rose 4.2% on Monday.
The company claims the order is under execution by a special purpose vehicle (SPV).
- Who
- Maharashtra Transport Minister Pratap Sarnaik and Olectra Greentech.
- What
- Potential cancellation of an electric bus contract.
- When
- Decision made on Monday evening; Minister announced on social media May 2024.
- Where
- Maharashtra
- Why
- Olectra Greentech failed to meet delivery deadlines.
Olectra Greentech's Response
Government's Concerns
Contract Status
Olectra Greentech's Response
Olectra Greentech says the SPV has not received any notice of cancellation.
Government's Concerns
Government is seeking to cancel the contract due to missed deadlines.
- Minister
- Pratap Sarnaik
- Bus Contract Quantity
- 5,150
- Contract Value
- ₹10,000 crore
- Revised Deadline
- May 22, 2025
- Lead Bidder
- Evey Trans Pvt. Ltd
- Revenue increase YoY
- 58%
