Maharashtra To Cancel E-Bus Orders With Olectra Greentech Over Delays, State Transport Minister Confirms

The Maharashtra government has decided to terminate its massive electric bus contract with Olectra Greentech, citing repeated delays in delivery. The deal, which aimed to add 5,150 electric buses to the state’s public transport fleet, has been scrapped after the company failed to deliver as per the agreed timeline.

Speaking exclusively to NDTV Profit on Tuesday, Maharashtra Transport Minister Pratap Sarnaik confirmed the state’s decision, saying, “We had an agreement with Olectra since January 2024, under which they were supposed to deliver over 2,000 buses by now. We had planned our operations accordingly to serve the people. But they have only delivered 220 buses so far.”

He further added that the government had expected at least 1,200 buses by May 2025, but that too did not materialise. “How long are we supposed to wait? We have sought legal advice to move ahead with contract cancellation,” Sarnaik said.

The state government has already invested more than Rs 600 crore to build charging infrastructure in anticipation of the full fleet. “It’s not that their buses are faulty. We just need the buses to serve people. We can’t wait indefinitely for a contractor,” Sarnaik said, adding that the government has sought legal advice and is preparing to initiate formal legal proceedings.

Olectra, meanwhile, has denied receiving any official termination notice. But Sarnaik pushed back, saying that the government has sent multiple notices, including three official communications from the Principal Secretary himself.

The government contract was for the supply, operation, and maintenance of 5,150 electric buses — one of the largest such deals in the country. With the contract now scrapped, Olectra Greentech’s order book has been effectively halved, slashing it from over 10,000 buses to around 5,000.