Latest news with #SpecialPurposeVehicle
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
24-05-2025
- Business
- Time of India
Bengaluru's chief engineer moved to new agency
Bengaluru: With an aim to revamp urban infrastructure management, Bruhat Bengaluru Mahanagara Palike (BBMP) engineer-in-chief BS Prahalad has been transferred to the newly formed Bengaluru Smart Infrastructure Limited (B-SMILE) as its director (technical). The move comes as part of the govt's decision to implement high-impact urban projects through a Special Purpose Vehicle (SPV) with an enhanced annual budget of Rs 7,000 crore. Prahalad had been entrusted with the task of improving the condition of roads and storm water drains, two areas where the BBMP had come under fire from Bengalureans, before he was put in-charge of the city's big ticket projects mooted by DCM DK Shivakumar and will be executed under B-SMILE. The transition, formalised through govt order dated May 23 also involves a reorganisation of the BBMP's engineering divisions. Prahalad's former role was dissolved, with structural works merged under the chief engineer (health and sanitation) and road development functions handed over to the chief engineer (road infrastructure). The restructured model aims to streamline operations and avoid overlapping mandates as the city gears up for a new governance framework under the Greater Bengaluru Governance Act-2024.
Ottawa Citizen
14-05-2025
- Business
- Ottawa Citizen
Angola Entry via Strategic Partnership with Corcel plc Investment in KON-16 Onshore Kwanza Basin
Article content TORONTO, May 14, 2025 (GLOBE NEWSWIRE) — Sintana Energy Inc. (TSX-V: SEI, OTCQB: SEUSF) ('Sintana' or the 'Company') is pleased to announce the formation of a strategic partnership with Corcel, plc (AIM: CRCL) ('Corcel') focused initially on opportunities in Angola. Article content Article content Specifically, Sintana and Corcel have entered into an agreement which provides for Sintana's acquisition of an indirect 5% net interest in KON-16 located in the onshore Kwanza Basin in Angola. Sintana will acquire its interest through the acquisition of a 5.88% equity stake in a newly formed Special Purpose Vehicle ('SPV') that will hold Corcel's consolidated 85% gross interest in KON-16. Additionally, Sintana will receive a future 2.5% Net Profits Interest ('NPI') on Corcel's interest in KON-16 of up to $50,000,000, after which the NPI reduces to 1.5%. The consideration for the transaction is a total of US$2.5MM payable by way of an initial US$500,000 deposit and a balance of payment at closing, which is subject to entry into definitive documents and other completion conditions expected to occur in Q3 2025. Article content Article content KON-16 represents one of the most exciting opportunities in the onshore Kwanza Basin with a history of successful exploration establishing petroleum systems in both post- and pre-salt intervals. KON-16 has multiple exploration opportunities, including a large, multi-target prospect whose primary targets contain estimated unrisked volumes of several hundred million barrels of recoverable oil. Article content Corcel and Sintana have also executed a Joint Study and Bid Agreement establishing an alliance to evaluate and pursue oil and gas exploration and production opportunities in Angola. Under the agreement, both parties commit to jointly collaborate on the identification and review of new opportunities. Participation in any specific opportunity is voluntary and subject to unanimous agreement on commercial and other bid terms. Article content Article content 'Our emerging partnership with Corcel is emblematic of our strategy to work with best-in-class partners and deploy high impact capital that brings us exposure to large potential resource outcomes that require little additional capital,' said Robert Bose, CEO of Sintana. 'We look forward to the expansion of our West African conjugate margin exposure through our acquisition of an interest in KON-16, one of the most promising blocks in a proven, underexplored basin,' he added. Article content Article content The Company is engaged in petroleum and natural gas exploration and development activities on six large, highly prospective, onshore and offshore petroleum exploration licenses in Namibia, and in Colombia's Magdalena Basin. Article content 'A. Robert Bose' Chief Executive Officer Article content For additional information or to sign-up to receive periodic updates about Sintana's projects, and corporate activities, please visit the Company's website at Article content Certain information in this release are forward-looking statements. Forward-looking statements consist of statements that are not purely historical, including statements regarding beliefs, plans, expectations or intensions for the future, and include, but not limited to, statements with respect to potential future farmout agreements on PEL 83 and/or PEL 87, and proposed future exploration and development activities on PEL 83 and/or PEL 90 and neighbouring properties, statements as to the future prospectivity of KON-16, the closing of the proposed transaction with Corcel as presently proposed or at all, the receipt of all applicable regulatory approvals, as well as the prospective nature of the Company's property interests. Such statements are subject to risks and uncertainties that may cause actual results, performance or developments to differ materially from those contained in the statements, including, but not limited to risks relating to the receipt of all applicable regulatory approvals, results of exploration and development activities, the ability to source joint venture partners and fund exploration, permitting and government approvals, and other risks identified in the Company's public disclosure documents from time to time. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements. The Company assumes no obligation to update such information, except as may be required by law. Article content
Toronto Star
14-05-2025
- Business
- Toronto Star
Angola Entry via Strategic Partnership with Corcel plc Investment in KON-16 Onshore Kwanza Basin
TORONTO, May 14, 2025 (GLOBE NEWSWIRE) — Sintana Energy Inc. (TSX-V: SEI, OTCQB: SEUSF) ('Sintana' or the 'Company') is pleased to announce the formation of a strategic partnership with Corcel, plc (AIM: CRCL) ('Corcel') focused initially on opportunities in Angola. Specifically, Sintana and Corcel have entered into an agreement which provides for Sintana's acquisition of an indirect 5% net interest in KON-16 located in the onshore Kwanza Basin in Angola. Sintana will acquire its interest through the acquisition of a 5.88% equity stake in a newly formed Special Purpose Vehicle ('SPV') that will hold Corcel's consolidated 85% gross interest in KON-16. Additionally, Sintana will receive a future 2.5% Net Profits Interest ('NPI') on Corcel's interest in KON-16 of up to $50,000,000, after which the NPI reduces to 1.5%. The consideration for the transaction is a total of US$2.5MM payable by way of an initial US$500,000 deposit and a balance of payment at closing, which is subject to entry into definitive documents and other completion conditions expected to occur in Q3 2025.
The Print
13-05-2025
- Business
- The Print
Andhra Pradesh to build port-based economy with Rs 3,500 cr ship-building project: CM Naidu
'We have unveiled a strategic plan to build a port-based economy by harnessing Andhra Pradesh's 1,000-kilometre coastline,' said Naidu in the press release. The chief minister outlined that the plan is expected to spur economic growth in the southern state and generate employment and create infrastructure, said an official press release. Amaravati, May 13, 2025 (PTI) Andhra Pradesh Chief Minister N Chandrababu Naidu on Tuesday announced a strategic plan to develop a port-based economy harnessing the state's 1,000-kilometre-long coastline, establishing ports or fishing harbours at every 50 km interval. As part of the central government's bifurcation-era commitment, a major initiative was discussed to establish a Ship Building and Repair Cluster at Dugarajapatnam in Nellore district. The project, based on an initial feasibility report, is proposed to be developed over 2,000 acres through collaboration between the central and state governments. Of the 2,000 acres, 1,000 acres will be allocated for core ship-building units and another 1,000 acres for ancillary industries. The plan includes setting up a greenfield port integrated with a ship-building and repair hub featuring four dry docks, outfitting jetties, and a ship-lift facility. The estimated central investment of the project is Rs 3,500 crore, with the Government of Andhra Pradesh contributing land as equity. TDP supremo said that a Special Purpose Vehicle (SPV) will attract global ship-building players and the project will bring Rs 26,000 crore investments creating 5,000 direct jobs, and 30,000 indirect jobs. The chief minister instructed officials to prepare a detailed action plan to expedite the project. He also emphasised improving cargo movement via Visakhapatnam Port, crucial to the state's growth. PTI MS STH MNK MNK This report is auto-generated from PTI news service. ThePrint holds no responsibility for its content.
