The order book of Olectra Greentech Ltd. has effectively halved after the Maharashtra government terminated a contract for 5,150 electric buses.
The state's transport minister, Pratap Sarnaik, took the decision to cancel the order during a meeting of the Maharashtra State Road Transport Corporation on Monday.
“The company concerned has been inactive in supplying 5,150 electric buses and the meeting directed that action should be taken to cancel the tender agreement signed…,” Sarnaik said in a post on X, formerly Twitter.
According to the minister, Olectra Greentech was given a revised schedule to supply 1,000 electric buses by May 22, but not one was delivered.
“Therefore, there is no doubt about the supply of buses by this organisation in the future. Therefore, it was said that the tender agreement with the company should be cancelled.”
Olectra, however, said that it has not received any communication from the state government regarding cancellation of orders, according to a statement to the exchanges on Wednesday.
MSRTC had in July 2013 signed a Letter of Intent with Olectra Greentech and EVEY Trans for the procurement of 5,150 electric buses. Only 220 of these have been delivered so far. The situation is said to be similar at Mumbai's BEST Corp., which has received only 536 of the 2,100 electric buses ordered from Olectra Greentech.
As on March 31, 2025, Olectra had an order book of 10,022 electric buses, according to its fourth-quarter results released on Monday. In fiscal 2025, the company's revenue increased by 56% year-on-year to Rs 1,801.9 crore, even as net profit surged by 77% to Rs 139.21 crore. The full-year Ebitda increased 49% to Rs 276.32 crore.
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