Latest news with #MSRTC
Time of India
3 days ago
- Business
- Time of India
Sarnaik Changes previous Stand for demanding cancellation of E-Bus Contract; Says Buses Needed in 'Larger Public Interest'
Mumbai: Less than a week after strongly criticising the company for delaying the supply of 5,150 electric buses on lease to MSRTC and demanding the cancellation of the contract, transport minister Pratap Sarnaik made a sudden volte-face on Friday. He informed the media that "the corporation must receive the supply of e-buses as per the revised schedule. " This decision came after a meeting with the wet lease company representatives, additional chief secretary (transport) Sanjay Sethi, and other senior officials on Friday. Sarnaik clarified that he was part of the govt, which continuously strives to provide facilities to passengers. His decision to now direct MSRTC to receive the supply of e-buses as per the revised schedule comes in "the larger interest of passengers who will benefit from these 5,000 plus buses in the long run. " It is learnt that the MSRTC signed a contract with the company to supply 5,150 electric buses on lease, of which 220 were delivered to date. These include both 12-metre and 9-metre long buses. The corporation created a department-wise account system to pay the company from the revenue generated by the electric buses. So far, Rs 60 crore was paid to the company, and the remaining Rs 40 crore is planned to be paid soon, sources said. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Trending in in 2025: Local network access control [Click Here] Esseps Learn More Undo Sarnaik told the media that considering the operational losses incurred with the supplied buses, a proposal for Viability Gap Funding (VGF) should be sent to the state govt to secure financial support. "While operating the buses, the corporation is incurring a loss of Rs 12 per kilometre for 12-metre buses and Rs 16 per kilometre for 9-metre buses. As a result, the corporation is expected to bear a loss of Rs 3,191 crore over the next few years," he said, adding that the govt should bear the losses through VGF. A meeting will be held in this connection (regarding losses and VGF) with Chief Minister Devendra Fadnavis, Deputy Chief Minister Eknath Shinde, and Deputy Chief Minister Ajit Pawar. Meanwhile, the existing Shivshahi buses operated by the ST Corporation should be gradually reconstructed and converted into Hirkani (semi-luxury) buses, the minister said. "These buses should be painted in the traditional green and white colours, as they were previously," he added.
Indian Express
4 days ago
- Business
- Indian Express
Adhere to revised timetable: Maharashtra Transport Minister Pratap Sarnaik tells consortium supplying e-buses to MSRTC
In a surprising turn of events, Maharashtra Transport Minister and MSRTC Chairman Pratap Sarnaik, who had earlier announced the cancellation of the Rs 10,000-crore electric bus contract with Olectra Greentech and Evey Trans Pvt Ltd, Friday asked the consortium to adhere to a revised supply timetable instead. At a meeting held with company representatives at the Mantralaya, Sarnaik reviewed the progress of the delayed e-bus deliveries and directed that the supply of the remaining electric buses be carried out as per the new timeline. 'The buses must be delivered according to the revised agreement to ensure passengers receive the facilities promised,' Sarnaik said, striking a conciliatory tone in contrast to his earlier hardline stance. In July 2023, Maharashtra State Road Transport Corporation (MSRTC) had awarded the wet lease contract for 5,150 electric buses to Olectra and Evey Trans (Under wet leasing, the lessor provides both the vehicle and the crew). The project was seen as a key step in the state transport body's fleet modernisation drive. However, persistent delays in delivery led to MSRTC issuing seven show-cause notices and imposing penalties worth around Rs 4 crore. In a media briefing after the meeting, Sarnaik confirmed that of the 5,150 buses, just 220 have been delivered so far. These include both 12-metre and 9-metre variants. Despite the poor supply record, the minister did not reiterate his previous announcement regarding the termination of the contract. Instead, he floated the possibility of seeking viability gap funding (VGF) from the state government to offset the high per-kilometre losses being incurred by MSRTC while running these electric buses. According to officials, MSRTC faces a loss of Rs 12 per kilometre for the 12-metre buses and Rs 16 per kilometre for the 9-metre variants, which could add up to Rs 3,191 crore over the next few years. So far, the transport body has paid Rs 60 crore to the supplier company from revenue generated through electric bus operations, and another Rs 40 crore is in the pipeline. 'The completion of this contract depends on whether the state government agrees to bear the operational losses,' Sarnaik said, adding that he would soon hold a meeting with Chief Minister Devendra Fadnavis and Deputy Chief Ministers Eknath Shinde and Ajit Pawar to take a final decision. The change in stance has surprised observers, especially given the consortium's poor track record not only with MSRTC but also with Mumbai's BEST undertaking, where similar delays have been reported. While no fresh deadline has been publicly disclosed, Sarnaik's softened approach signals that the government may be willing to work around the delays – provided financial backing is secured and deliveries are ramped up.
India Today
5 days ago
- Politics
- India Today
Manipur government denies issuing order to cover state name amid festival row
The Manipur Government has issued a firm clarification denying any directive to conceal the name 'Manipur' on an official bus, amid ongoing controversy surrounding an incident during the recently concluded Shirui a press release issued by the Chief Secretary, the government stated that there had been no instruction whatsoever, not even a remote consideration, to cover the state's name on the Manipur State Road Transport Corporation (MSRTC) bus, as alleged in various clarification follows criticism that erupted after a May 20 incident in which a bus ferrying journalists to the festival in Ukhrul was reportedly stopped and the word 'Manipur' on the vehicle was allegedly covered. The incident has drawn sharp reactions from several quarters, raising questions about the message it conveys amid ongoing unrest and efforts to restore the claims, the official statement said, 'There has been no such instruction, and the public is requested not to be misled by unverified assertions.' The government reiterated its appeal for cooperation in maintaining peace and public order during this sensitive period. advertisement The Shirui Festival, a major cultural event held in Ukhrul district, was organised as part of the state's broader normalcy-restoration to the Chief Secretary's statement, the event attracted around 1.7 lakh visitors, including families from both the valley and hill districts, as well as tourists from outside the provided tight security and ensured a safe environment throughout the celebrations. Despite the festival's success, the May 20 incident cast a shadow over the event and prompted the state administration to take swift government has expressed deep regret over the incident and confirmed that the Governor has constituted an Inquiry Committee comprising the Commissioner (Home) and the Secretary (IT) to investigate the matter thoroughly. The committee has been instructed to submit its findings within a specified assured that strict action will be taken against those found responsible, if any lapses are identified through the inquiry. "The state will also ensure that such incidents do not recur in the future,' the release its commitment to the unity and integrity of Manipur, the government reaffirmed that all its efforts are focused on establishing lasting peace. The public has once again been urged to extend full cooperation to the administration and law enforcement agencies in preserving order and harmony across the Watch
Time of India
6 days ago
- Business
- Time of India
Olectra Greentech shares in focus after issuing clarification on Rs 10,000 cr E-bus order with MSRTC
Shares of Olectra Greentech are expected to remain in focus on Wednesday, May 28, following the company's clarification to stock exchanges regarding media reports that claimed the Maharashtra government had cancelled a Rs 10,000 crore electric bus order. According to the clarification submitted by Olectra Greentech to the exchanges, the electric bus project was awarded by the Maharashtra State Road Transport Corporation (MSRTC) to a consortium comprising Olectra Greentech Limited and EVEY Trans Private Limited (EVEY). Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Air conditioners without external unit. (click to see prices) Air Condition | Search Ads Search Now Undo The consortium had received a Letter of Intent from MSRTC for the supply, operation, and maintenance of 5,150 electric buses, including related electrical and civil infrastructure, under a Gross Cost Contract (GCC) basis. The company noted that, as per the tender conditions, the contract is being executed through a Special Purpose Vehicle (SPV) named EVEY Trans (MSRTC) Private Limited, in which EVEY holds a 99% stake and acts as the lead bidder, while Olectra holds the remaining 1% stake. All communications regarding this project are to be routed between the SPV and MSRTC. Live Events Olectra Greentech further stated that the SPV has not received any communication from MSRTC, suggesting that the contract has been cancelled or is under reconsideration. "At present the Contract execution is under process and as per the clarification provided by EVEY they haven't received any such order as of now," the company said in its exchange filing. The media reports in question alleged that the Maharashtra government had scrapped a large-scale contract awarded to Olectra Greentech for the supply of electric buses. The shares of Olectra Greentech, as a result, experienced a sharp fall on Tuesday, ending 6.5% lower at Rs 1,258.05 on the BSE. In response, the company has strongly refuted the claims, stating that no official communication regarding the cancellation has been received by its executing entity. Also read: HDFC unit is said to near SEBI nod for $1.5 billion IPO
Indian Express
27-05-2025
- Business
- Indian Express
Maharashtra transport minister orders cancelling MSRTCs Rs 10,000 crore e-bus contract over missed deadlines
Maharashtra Transport Minister and Maharashtra State Road Transport Corporation (MSRTC) Chairman, Pratap Sarnaik, on Monday ordered the termination of the wet lease contract awarded to Olectra Greentech Ltd and Evey Trans Pvt Ltd for supplying 5,150 electric buses to the state-run public transport agency. The decision was made citing the companies' failure to meet delivery deadlines and repeated delays in supplying the e-buses. In July 2023, MSRTC had awarded one of the world's largest electric bus supply contracts, valued at Rs 10,000 crore, to Olectra Greentech Ltd and Evey Trans Pvt Ltd, both subsidiaries of Megha Engineering and Infrastructure Ltd, to expand its fleet. The agreement required delivery of the buses over a 24-month period starting November 2023, with a target of 215 buses per month. According to the initial terms of the contract, the consortium was expected to deliver over 4,000 buses by May 2025. The contract was later revised, reducing the delivery target to 1,000 buses by the same date. However, as of now, the consortium has delivered only 240 buses. 'There is doubt about the company's ability to supply buses in the future. Since the corporation urgently needs buses, if the company cannot fulfill its delivery obligations, the tender contract should be cancelled. At a time when MSRTC is in dire need of vehicles, the company's failure to meet deadlines is unacceptable,' said Sarnaik during a review meeting at MSRTC headquarters. The consortium has stated that it has not yet received any official communication from the government regarding cancellation of the contract. 'We have not received any such notice from MSRTC. We remain committed to delivering pollution-free, comfortable, and economical public transportation solutions, namely Olectra e-buses, to our esteemed client MSRTC,'the company Olectra said in its statement. So far, MSRTC has issued seven show-cause notices to the consortium and imposed penalties totaling approximately Rs 4 crore for breaches of contract and delays in timely delivery. The company had previously cited global supply chain disruptions—particularly the import of lithium-ion battery cells from China, which constitute nearly 50% of the bus cost, as the primary reason for the delays. While the chassis and bus bodies are manufactured domestically, dependency on imported components has hampered production. The consortium's poor delivery record is not limited to MSRTC. It has also failed to meet commitments made to the Brihanmumbai Electric Supply and Transport (BEST) undertaking. In May 2022, BEST had awarded the company a contract to supply 2,100 electric buses within a year. However, over the past three years, only 578 buses have been delivered. 'Currently, 100 buses per month are being delivered to BEST. In the past four months, more than 300 buses have been supplied, and the company aims to complete the 2,100-bus contract within this financial year,' a company spokesperson said. The delay has significantly hampered MSRTC's efforts toward financial recovery and fleet modernization. Serving over 5.3 million passengers daily, MSRTC operates one of India's largest inter-city bus networks and relies heavily on state support to cover expenses, including salaries for over 90,000 employees. 'Owing to the delays and non-performance, the minister has ordered the immediate cancellation of the contract with the consortium. The corporation is now exploring legal options to recover damages and is seeking alternative suppliers to meet its electrification targets,' said a senior MSRTC official.
