Maharashtra Government Reinstates Electric Bus Contract with Olectra Greentech Under Revised Timeline

The Maharashtra government has reinstated its ₹10,000 crore electric bus contract with Olectra Greentech Ltd, which was earlier cancelled due to delivery delays. The company has now been granted an extension, committing to deliver 5,150 electric buses in 3 phases: 840 in 2025, 2,150 in 2026, and 1,600 in 2027. Transport Minister Pratap Sarnaik announced the reinstatement during a joint press conference with Olectra representatives, citing the company’s revised delivery plan and new compliance guarantees as the reason for revoking the previous cancellation.

Subsidy Delays Hindering EV Progress

The delay in electric vehicle subsidies has been identified as a major factor affecting the contract’s execution. Sarnaik acknowledged that the state government’s delay in releasing ₹3,191 crore in pending EV subsidies-including ₹860 crore for 1,200 buses-has affected production timelines. Olectra officials also noted that an additional ₹2 crore remains unpaid. 

Sarnaik stressed that if the finance department does not provide timely funding, manufacturers and the transport sector will struggle to meet growing demand. He suggested the need for viability gap funding to support bus manufacturers and ensure continuity of the EV programme.

Future Plans and Strategic Support for Clean Mobility

Maharashtra’s long-term public transport vision includes the procurement of 25,000 buses over the next decade, at an estimated cost of ₹70,000 crore. Sarnaik emphasised that financial support to original equipment manufacturers (OEMs) and state transport bodies is essential to achieving the state’s clean mobility and net-zero targets. 

He has urged the finance department to prioritise EV subsidies and confirmed discussions with Deputy CM Ajit Pawar, who assured action on releasing pending payments. A joint meeting with key leaders, including the Chief Minister, is being considered to chart the path forward. Olectra now has a renewed opportunity to contribute significantly to the state’s green transport mission.

Read More: Olectra Share Price in Focus; Profit Nearly Doubles in FY25 Results!

Olectra Greentech Share Price Performance 

As of June 02, 2025, at 10:55 AM, Olectra Greentech share price is trading at ₹1,254 per share, reflecting a surge of 1.98% from the previous closing price. Over the past month, the stock has surged by 9.81%. The stock's 52-week high stands at ₹1,960 per share, while its low is ₹989.95 per share.

Conclusion 

The Maharashtra government's decision to reinstate Olectra’s contract reflects a balanced approach, addressing immediate transport needs while reinforcing its commitment to clean mobility. By resolving subsidy issues and supporting manufacturers, the state aims to keep its EV transition on track and meet long-term sustainability targets.

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