Electric bus manufacturer Olectra Greentech on Monday said that the Rs 70 crore order it received from the Gujarat State Road Transport Corporation (GSRTC) to supply an additional 50 buses now stands terminated.
Olectra and GSRTC have “mutually decided not to proceed with the additional buses order,” the company informed NSE.
Olectra Greentech had initially bagged an order from GSRTC for supplying 50 electric buses, which were supplied.
Later, GSRTC issued a Letter of Award to Olectra for supplying an additional 50 buses as per the earlier tender conditions.
After issuing the Letter of Award to Olectra, the agreement execution did not culminate since some critical commercial terms and conditions were not agreed upon between the parties.
The two entities could not, however, agree on certain critical commercial aspects that were considered for arriving at the cost of the project. This includes advertisement rights on the buses and the minimum assured KMs to be offered.
“Except for the order book getting reduced by 50 buses, there is no adverse impact on the company since it has been consistently bagging larger orders for electric buses,” the NSE filing said.
Shares of Olectra Greentech are down 1.5 percent at Rs 586.60 as of 11 AM.
In September, Olectra had bagged an order worth Rs 151 crore for supplying 100 electric buses to the Assam State Transport Corporation.
Prior to that in May, Olectra Greentech won an order worth Rs 3,675 crore to supply 2,100 electric buses to the Brihanmumbai Electric Supply & Transport (BEST).
Olectra Greentech is planning to raise up to Rs 800 crore through the issuance of securities.
