Olectra Denies Cancellation of ₹10,000-Crore MSRTC E-Bus Order

Hyderabad- Olectra Greentech Limited., has issued a formal clarification in response to recent media reports alleging the cancellation of a ₹10,000-crore electric bus contract awarded by the Maharashtra State Road Transport Corporation (MSRTC). The company firmly stated that no official communication regarding the termination of the project has been received by its Special Purpose Vehicle (SPV), which is executing the order.

The consortium of Olectra Greentech Limited (Olectra) and EVEY Trans Private Limited (EVEY) had secured a Letter of Intent (LoI) from MSRTC for the supply, operation, and maintenance of 5,150 electric buses, along with related electrical and civil infrastructure, under a Gross Cost Contract (GCC) model. This development was duly disclosed to the stock exchanges on July 7, 2023, in accordance with Regulation 30 of the SEBI (LODR) Regulations, 2015.

Under the agreed tender structure, the contract is being executed by a Special Purpose Vehicle—EVEY Trans (MSR) Private Limited—where EVEY holds a 99% stake as the lead bidder, while Olectra holds a 1% stake.

Addressing investor and media concerns, Olectra confirmed that the SPV has not received any communication from MSRTC indicating cancellation or modification of the awarded contract. "At present, the contract execution process is ongoing, and based on the clarification provided by EVEY, no such cancellation order has been communicated by MSRTC," the company noted.

Olectra reiterated that all developments related to the contract have been transparently communicated since the LoI was awarded. No ongoing negotiations or events indicating a change in the contract status have been reported by the SPV since then.

Responding to queries about any undisclosed information that could explain the recent movement in the company’s stock price, Olectra reaffirmed its commitment to regulatory compliance. The company stated that it has consistently adhered to disclosure norms under SEBI (LODR) Regulations and reiterated that the current news article is speculative in nature, given the absence of official communication from MSRTC.

As of now, the company maintains that the news article has no material impact. "The article remains unsubstantiated at this moment," Olectra emphasized, urging stakeholders to await official developments rather than rely on market speculation.