Olectra Greentech secures order worth Rs500 crore for 300 Electric Buses; stock adds ~1.5%

25 Jul 2022 , 10:40 AM

Olectra Greentech Limited informed that Evey Trans Private Limited (EVEY) has secured a Letter of Award (LoA) from one of the State Transport Corporations for 300 Electric Buses under the FAME-II scheme of the Government of India.

This 12-year contract for the supply of 300 electric buses is based on a Gross Cost Contract (GCC) / OPEX model (Contract Period).

These buses will be purchased by EVEY from Olectra Greentech Limited (Olectra) and delivered over a 20-month period. During the Contract Period, Olectra will also be responsible for the maintenance of these buses.

For Olectra, the value of these 300 buses would be around Rs500 crores.

These transactions between Olectra and EVEY are to be treated as related party transactions and the company aims to conduct them at arm’s length.

Olectra Greentech is a pioneer in the manufacturing of electric buses and insulators in India. Through this endeavour, OGL has contributed to the development of power transmission and distribution in India.

At around 10.42 AM, Olectra Greentech was trading at Rs654.85, up by 1.54% against previous close of Rs644.90 on NSE. So far, it touched intraday high and low of Rs664 and Rs645.10 respectively.