Mumbai: Olectra Greentech Limited receives LoA from BEST for 2,100 E-buses

This is also the biggest order (Letter of Award) in Indian Electric mobility history as on date.

Staff ReporterUpdated: Tuesday, May 24, 2022, 12:05 AM IST
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Mumbai: Olectra Greentech Limited receives LoA from BEST for 2,100 E-buses | FP PHOTO

Olectra Greentech Limited has bagged the biggest ever order for 2,100 electric buses worth Rs 3,675 crore, from the Brihanmumbai Electric Supply and Transport (BEST), an undertaking of the Brihanmumbai Municipal Corporation (BMC). Two top electric vehicle (EV) firms, including Tata Motors, have already approached the courts against their tenders being rejected by BEST over technicalities.

Evey Trans Private Limited (EVEY), which is a subsidiary of Olectra, has received the Letter of Award (LoA) from BEST. This is also the biggest LoA in the history of Indian electric mobility. Olectra reportedly faced technical problems in Goa. Its tender was earlier rejected by the BEST but was cleared in the second go.

The order is to supply e-buses on the Gross Cost Contract (GCC) /Opex model for a period of 12 years. EVEY will procure these buses either directly or through its special purpose vehicle from Olectra Greentech Limited (Olectra).

As per the order, Olectra will also undertake the maintenance of these buses during the contract period. This transaction between Olectra and EVEY is to be considered a related-party transaction and will be on an arm’s length basis.

Currently, EVEY and Olectra Greentech Limited are operating electric buses in various State Transport Undertakings (STU) in the country, such as Pune (PMPML), Hyderabad, Goa, Dehradun, Surat, and Ahmedabad, Silvassa, and Nagpur.

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