Olectra Greentech Shuns Cancellation of ₹10,000 Crore e-bus Order Contract

Olectra Greentech Ltd rejected the reports pertaining to cancellation order for its electric bus contract in Maharashtra worth ₹10,000 crore.

“The contract execution is under process. Haven’t received any cancellation order as reported in the media,” the company said.

Despite the clarification, Olectra shares fell by 13% during the intraday. This took place after Maharashtra Transport Minister Pratap Sarnaik announced on X that a tender for electric buses in Bhandetali stands to remain cancelled due to “serious discrepancies.”

“The decision has been taken to cancel the tender awarded to the company operating 150 electric buses in Bhandetali due to serious discrepancies. A fresh tender will be issued soon,” Sarnaik wrote. He did not name the company, but investors pointed fingers at Olectra Greentech to be the aggrieved party.

Earlier this year, Olectra along with Evey Trans Private Limited (EVEY), had received a Letter of Intent (LOI) from the Maharashtra State Road Transport Corporation (MSRTC). The letter intended to supply, operate, and maintain 5,150 electric buses under a Gross Cost Contract model. The contract was estimated at ₹10,000 crore.

Shares of Olectra Greentech Ltd closed at ₹1,255.90, down ₹89.60 or 6.65% from the previous day’s close.