Olectra Greentech has received a demand notice from the Telangana Industrial Infrastructure Corporation Limited (TGIIC), imposing a penalty of ₹2,57,87,484 (including GST). The penalty is due to delays in the completion of the Greenfield EV Manufacturing Facility in Telangana, covering the period from November 12, 2023, to November 11, 2025. The company is currently reviewing the notice.
Penalty Imposed by TGIIC
Olectra Greentech has been directed by Telangana Industrial Infrastructure Corporation Limited (TGIIC) to remit a penalty amount of ₹2,57,87,484. The penalty is a result of delays encountered during the construction of the company’s Greenfield EV Manufacturing Facility.
Details of the Delay
The penalty relates to the period from November 12, 2023, to November 11, 2025. The TGIIC invoked a penalty clause outlined in the Sale Agreement due to delays in completing the full factory construction at the Industrial Park in Seetharampur, Hyderabad, Telangana. This Sale Agreement, dated November 11, 2021, covered the acquisition of 150 acres for the manufacturing facility.
Company’s Response
While the penalty has been levied, Olectra Greentech clarifies that it has already partially commenced commercial operations at the new facility within the originally stipulated timelines. The company is assessing the implications of the penalty notice.
Financial Impact
Olectra Greentech has stated that apart from the penalty amount, there is no other material impact financially or operationally expected due to this development.
Source: BSE
