Daijiworld Media Network - Mumbai

Mumbai, May 2: Olectra Greentech Ltd’s stock tumbled as much as 14% on Tuesday, sliding to an intraday low of Rs 1,160, after the Maharashtra government cancelled its massive 5,150-electric-bus tender in response to persistent delivery delays.

On X, Maharashtra Transport Minister Pratap Sarnaik blasted the company for falling far short of its commitments. “Under our January 2024 agreement, Olectra was to hand over 1,000 buses by May 22—and over 2,000 in total by now,” Sarnaik said. “Yet they’ve delivered just 220 vehicles. We can’t stall our public transport plans indefinitely.”

Frustrated by the supplier’s inaction, officials were instructed to scrap the entire order, prompting Olectra’s order book to shrink from more than 10,000 buses to roughly 5,000. The state has already invested over Rs 600 crore in charging infrastructure, banking on a full fleet rollout.

Sarnaik told reporters that the government expected at least 1,200 buses by May 2025. “We’ve sought legal counsel to move forward with contract termination,” he added, noting that multiple official notices—including three from the Principal Secretary—have been sent to Olectra, though the company claims no formal termination notice has been received.

With court proceedings on the horizon, Maharashtra’s decision underscores rising tensions between state transport authorities and EV suppliers struggling to meet aggressive rollout targets. Investors reacted swiftly, driving Olectra’s shares sharply lower amid concerns over future orders and contractual stability.