Olectra Greentech has announced that its subsidiary, Evey Trans Private Limited (EVEY), has won two Letters of Award (LOAs) from the Telangana State Road Transport Corporation (TGSRTC). The deal covers the supply, operation, and maintenance of 1,085 Electric Buses, valued at approximately Rs. 1,800 Crores for Olectra. The order comprises 1,025 Non-AC and 60 AC buses for intra-city routes, executed under a Gross Cost Contract (GCC) model over 12 years.
Olectra Subsidiary Secures Major Bus Supply Contract
Olectra Greentech Limited has disclosed a significant business achievement through its subsidiary, Evey Trans Private Limited (EVEY). EVEY has received two Letters of Award (LOAs) from the Telangana State Road Transport Corporation (TGSRTC). This contract mandates the supply, operation, and maintenance of a total of 1,085 Electric Buses intended for intra-city operations.
Deal Composition and Value
The total order is substantially large, with the projected value for Olectra estimated at approximately Rs. 1,800 Crores. The fleet breakdown is as follows:
- 1,025 units of 12-Meter Non-AC Buses.
- 60 units of 12-Meter AC Buses.
This execution is based on a Gross Cost Contract (GCC) / OPEX model, spanning a comprehensive contract period of 12 years.
Procurement and Delivery Schedule
As part of the agreement, EVEY will procure all 1,085 buses directly from Olectra Greentech Limited. The delivery schedule requires Olectra to supply the buses over a period of 20 months. Furthermore, Olectra will also be responsible for the maintenance of these buses throughout the entire 12-year Contract Period.
Related Party Disclosure
The company confirmed that this transaction falls under the category of related party transactions between Olectra and EVEY. Crucially, the terms and conditions of these proposed transactions will be conducted strictly on an “arm’s length basis” to ensure fairness and compliance.
Source: BSE
