Latest news with #OlectraGreentech
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.
Time of India
5 days ago
- Automotive
- Time of India
India's ambitious e-bus drive faces component supply constraints, financing hurdles
HighlightsMaharashtra may cancel ₹10,000 crore e-bus order with Olectra due to major delivery delays. E-bus makers face supply shortages for key parts from China and the US. No rival suppliers are ready to fulfil large state orders on short notice. OEMs like Switch are boosting localisation and scaling production to tackle supply issues. India wants to quickly transition to green public transportation and has set itself an ambitious target of deploying 50,000 e-buses by 2027. An overwhelming procurement of 90% of these e-buses is to be done by various state governments instead of private operators. But supply chain issues, specifically for components coming from China, continue to be a roadblock in this ambitious plan. There are other challenges too, including access to financing and infrastructure readiness. Earlier this week, news reports suggested that the Maharashtra government has decided to cancel a large order for supply of e-buses due to inordinate delays in supplies. State transport minister Pratap Sarnaik said as much on X, though he did not name the supplier. The contract was signed between the state government and a Special Purpose Vehicle (SPV) , which comprises Olectra Greentech and another group company, and it was inked for supply of 5,150 electric buses to the state government in 2023. Reports suggest that less than 250 buses have been delivered till date and the contract had been revised once earlier, with the supply timelines eased. So what went wrong? Supply challenges for chassis and battery components have been severely affecting the manufacturing of electric buses, not just for the Olectra SPV but for much of the e-bus ecosystem in India. Another industry player said he was negotiating with a European company for a partnership to enter the 9 metre electric bus segment in India, while pointing out the continued supply challenges for battery and chassis components besides magnets. 'Everybody is getting affected, all major electric bus OEMs are getting affected. China and the USA - major suppliers of some of the components - have been flexing their muscles but I believe eventually, things will get sorted out,' this person said. We have navigated supply chain challenges through robust planning and favorable geopolitical developments. We rely on trusted partners for important EV components, battery, motors, and power electronics. We closely work and collaborate with partners to manage the Babu Mahesh Babu, CEO Switch Mobility , another electric bus manufacturer with an order book of 2921 units last fiscal (of which 982 had been delivered), said his company has been investing in local battery assembly and in strengthening logistics partnerships to increase localisation and reduce supply chain vagaries. 'We have navigated supply chain challenges through robust planning and favorable geopolitical developments. We rely on trusted partners for important EV components, battery, motors, and power electronics. We closely work and collaborate with partners to manage the challenges. We are also investing in local battery assembly, pursuing long-term contracts with suppliers and strengthening logistics partnerships, with over 65% localization in manufacturing and plans to increase this to 90% aligning with the 'Make in India' vision.' Also read: Karnataka to receive 4,500 electric buses under PM e-Drive scheme Over 90% of e-bus procurement is currently driven by state governments and public transport corporations (STUs), supported by central schemes like FAME-II and new initiatives under PM e-Bus Sewa and PM e-Drive . State governments have no option But even as different e-bus makers are trying to innovate and also address the supply constraints by developing a local vendor base, there really appears to be little the state governments can do to get the e-bus orders in time! While Olectra says it is yet to receive any intimation about the cancellation of the MSRTC order, in a subsequent discussion with analysts, the company's CFO B Sharatchandra did not seem perturbed by the impending cancellation. When asked whether it was fair to assume that if MSRTC were to cancel the order, there were no competing suppliers who could step up and fulfil the order in the timeline decided, he said 'I think you are right. Yes, you can assume. So, obviously, everybody has got capacity constraints and our product, as you rightly said, has got an edge in terms of technology and in terms of performance over the competition. So, we hope, as Hanuman (company secretary) has clarified to earlier queries, we are optimistic that there will not be any negative impact on account of this'. In other words, Olectra SPV's loss is unlikely to be a competitor's gain. The Olectra officials also admitted that delays in procuring powertrain components relating to battery and some of the components relating to chassis have hampered production of e-buses but again alluded to the delays in deliveries of e-buses by the entire industry to drive home the point that supply chain limitations are universal. The MSRTC order was labelled as one the world's largest e-bus procurements and was worth Rs 10,000 crore. The initial agreement for e-bus supply was later amended to reduce the number of buses to be supplied, due to inability of the SPV to meet the targets. 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 Greentech consortium A consortium of Olectra Greentech Limited and EVEY Trans Private Limited was awarded this contract by the MSRTC for 5,150 Electric Buses and allied Electrical and Civil Infrastructures on Gross Cost Contract (GCC) basis. And that EVEY Trans is executing this contract with MSRTC through the SPV. '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.' Meanwhile, in answer to another question, the Olectra CFO admitted that the company's total backlog was 'quite severe. We have orders of, I think more than 4,500 (e-buses)...pending and another 5,000 with MSRT, which we have to deliver in the next, I believe 18 months'. The company plans to ramp up production by deploying robotics in Q4 of FY26. Also read: Electric two wheeler sales cross a million units in FY25 but growth is slowing down Switch to double volumes Babu of Switch mobility said that the company's goal was to double volumes and revenue annually over the next three years, supported by a robust order pipeline exceeding 1,800 electric vehicles, including international orders such as from Mauritius. 'We are scaling up production and expanding our service network with 18 exclusive bus service outlets and 50+ dealer points across India.' Beyond battery and motor supplies, Babu listed out some other challenges being faced by the electric bus OEMs: Charging Infrastructure, customization complexity alongside diverse city requirements, shortage of skilled workforce, and access to financing and infrastructure readiness, especially in tier 2 and 3 cities.
Time of India
7 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
&w=3840&q=100)
Business Standard
27-05-2025
- Business
- Business Standard
Olectra Greentech shares tank 12% in trade; What is rattling investors?
Olectra Greentech share price slumped 12 per cent in trade on Tuesday, May 27, 2025, logging an intraday low at ₹1,180 per share on BSE. At 12:07 PM, Olectra Greentech shares were down 5.89 per cent at ₹1,266.05 per share on the BSE. In comparison, the BSE Sensex was down 0.18 per cent at 82,024.78. The market capitalisation of the company stood at ₹10,391.83 crore. The 52-week high of the stock was at ₹1,960 per share and the 52-week low of the stock was at ₹973.65 per share. In the past one year, Olectra Greentech shares lost 26 per cent as compared to Sensex's rise of 9 per cent. Olectra Greentech Q4 results 2025 The company released its March quarter (Q4FY25) earnings on Monday, after market hours. The electric bus manufacturer reported a consolidated net profit of ₹20.68 crore, up 38 per cent year-on-year (Y-o-Y), from ₹14.9 crore in Q4FY24. However, on a quarter-on-quarter (Q-o-Q) basis the net profit slipped 56 per cent from ₹46.61 crore in Q3FY25. The company's revenue from operations rose 55 per cent Y-o-Y to ₹448.91 crore, from ₹288.8 crore a year ago. On a Q-o-Q basis, the revenue fell 13 per cent from ₹515 crore in Q3. Olectra Greentech dividend The company's board recommended a dividend of ₹0.4 (10 per cent) per equity share of ₹4 each for the financial year 2024-25. "The board of directors of the company in their meeting held on May 26, 2025, have recommended the final dividend at the rate of 10 per cent (i.e. ₹0.40/- only) per equity share of ₹4.00/- (Rupees Four only) each fully paid-up, subject to approval of the shareholders of the company, which if approved, shall be paid within thirty days from the conclusion of the Annual General Meeting of the company," the filing read. Olectra Greentech order cancelled Reports suggest that Maharashtra's Transport Minister, Pratap Sarnaik directed officials to cancel the tender order awarded to the company for failing to meet delivery timelines. In his 'X' post the minister without naming the company said the company has been inactive in supplying 5,150 leased electric buses and the meeting is directed at taking action to cancel the tender contract signed by ST Corporation with the company. He added: A revised schedule was given to the concerned bus supplier organization to supply 1,000 buses by May 22. But it was not possible to supply a single bus to the concerned company till this period. Therefore, there is doubt about the supply of buses by this organization in the future. ???? २६ मे २०२५ | ????मुंबई भाडेतत्त्वावरील इलेक्ट्रिक बस करार रद्द करा ५१५० भाडेतत्त्वावरील इलेक्ट्रिक बस पुरवठा करण्यात संबंधित कंपनी निष्क्रिय ठरली असून या कंपनीसोबत एसटी महामंडळाने केलेला निविदा करार रद्द करण्याबाबत कारवाई करावी असे निर्देश बैठकीत दिले. आज एस. टी. महामंडळाच्या… — Pratap Baburao Sarnaik (@PratapSarnaik) May 26, 2025 About Olectra Greentech Olectra Greentech Ltd. is a prominent player in India's EV sector, specialising in the production of electric buses and related infrastructure.
The Hindu
27-05-2025
- Business
- The Hindu
First batch of five electric buses arrives in Puducherry; trial run in a few days
After a long wait, the first batch of five electric buses, including a prototype, have arrived in Puducherry from Hyderabad. Another bus is expected this week. The low-floor buses supplied by Evey Trans Private Limited, a subsidiary of Olectra Greentech, reached Puducherry on Monday (May 26, 2025) and is aimed at strengthening the public transport sector's shift to electric vehicles. Commuters in Puducherry and its suburbs can now expect an improved and hassle-free travel experience, thanks to the modern features of these electric buses, officials said. The charging station for the electric buses is being established by Evey Trans Private Limited on a 25,000 sq. ft. site belonging to the Puducherry government on Maraimalai Adigal Salai. A major portion of the work is completed, and the facility will be ready in the next two weeks. According to Transport Commissioner A.S. Sivakumar: 'As many as five buses have arrived, while another bus is expected this week. The remaining 19 buses will be inducted in a phased manner before July-end. These buses have been brought in under the FAME-II scheme of the Government of India.' 'The 25 buses (10 AC and 15 non-AC) are 9-metre buses and will be run under Gross Cost Contract (GCC) in Public-Private Partnership (PPP) model. The ₹23-crore seed funding from the Smart City project will be utilised for the payment on per km basis along with ticket revenue. The buses will ply on 15 tentative routes within urban areas, and will be operated under a Viability Gap Funding model.' The prototype of the bus will be on a trial run for a few days to assess its technical and mechanical strength. It will ply on designated routes for a few days without any passengers to check single charging range and other practical aspects. The buses will then be formally flagged off by the Lt. Governor and Chief Minister, and be available for city residents. Tentative routes The buses will ply on two routes — the first one starts from the railway station and ends at the airport, and goes through the old bus stand, new bus stand, Indira Gandhi square, Rajiv Gandhi square, and Jeeva colony. The second route starts from Puducherry to the airport, and will ply through the railway station, Government General Hospital, Ajantha signal, Karuvadikuppam, and Lawspet. With the charging station being set up by the operator getting ready, Evey Trans Private Limited has planned to charge the buses at a facility run by another private operator near the toll gate at Morattandi. This company already operates electric buses from Puducherry to Chennai, and the facility will be used for charging buses overnight, Mr. Sivakumar said. The upcoming charging station includes allied infrastructure with annual fleet-level guaranteed operations of 200 km per day per bus, for a period of 12 years. The operator is to foot the electricity cost and all maintenance costs of the buses. The Puducherry Road Transport Corporation (PRTC) or Puducherry Urban Transport Agency (PUTA) will be responsible for the fare collection and passenger tax on tickets, while all other permissions and clearances, including registration, insurance, stage carrier permit, Motor Vehicle Tax, and GST on kilometre charges, will be borne by the operator. An escrow account has been created and all revenue generated and the income accruing from the operation of the buses will be deposited into the account. This would help in rationalising the prices that would be paid on a per kilometre usage. The battery-operated buses have a life of 6-7 years and cover over 200 km in one charge. It takes around six hours to charge the buses.
