The Maharashtra government has cancelled a massive ₹10,000 crore electric bus contract with Olectra Greentech Ltd and Evey Trans Pvt Ltd after consistent delivery delays. The deal, signed in July 2023, aimed to introduce 5,150 electric buses to the Maharashtra State Road Transport Corporation (MSRTC) fleet by 2025. The rollout was to begin in November 2023, but by May 2025, only 240 buses had arrived — far short of the revised milestone of 1,000.
Frustrated by the slow pace and repeated breaches of contract, Transport Minister and MSRTC Chairman Pratap Sarnaik ordered the termination of the agreement. MSRTC had already issued seven show-cause notices to the consortium and imposed penalties amounting to ₹4 crore.
Touted as one of the world’s largest e-bus procurement projects, the contract was central to Maharashtra’s push toward sustainable public transportation. However, the inability to meet deadlines has raised serious concerns about the consortium’s capacity to handle large-scale public mobility projects.
In a statement, Olectra Greentech said they had not received formal termination notice and reiterated their commitment to delivering eco-friendly, cost-effective transport solutions.
The cancellation sends a strong message about the state’s zero-tolerance stance on inefficiency, especially in critical public infrastructure projects, and underscores the need for reliable partnerships in India’s transition to electric mobility.
