Olectra Greentech chairman and managing director KV Pradeep resigns citing personal reasons

Olectra Greentech Ltd. on Monday, June 9, said its chairman and managing director KV Pradeep has tendered his resignation, citing personal reasons.

He has also resigned as director of the company, it added.

The effective date of his resignation will be informed in due course of time, the company said in an exchange filing.

Last month, Maharashtra transport minister Pratap Sarnaik, without naming Olectra Greentech, wrote on his X handle that the company has been inactive in supplying 5,150 leased buses and that he directed officials to cancel the agreement.

The minister also said the company was given a revised schedule to supply 1,000 buses by May 22, but not a single one had been delivered, raising doubts over the future delivery of the vehicles by the company.

Olectra Greentech later clarified that the order is currently under execution by its special purpose vehicles (SPV) that it has with Evey Trans Pvt Ltd. Under this SPV, Olectra Greentech has only 1% stake, while Evey, being the lead bidder, has 99% stake in the SPV. The company also went on to clarify that the SPV has not received any notice of the order being cancelled yet.

On July 7, 2023, Olectra Greentech had announced that a consortium of Olectra and Evey was awarded the letter of intent for the supply of 5,150 electric buses from the MSRTC. The order was valued at nearly ₹10,000 crore and the contract period was for 12 years.

Evey was supposed to procure the buses from Olectra Greentech and then deliver them to the MSRTC over the next 24 months (by July 2025), while Olectra would provide maintenance services over the entire contract period. The stock had jumped 20% that day post the announcement.

Shares of Olectra Greentech Ltd. were trading 0.42% up at ₹1,227.9 apiece at 2.55 pm on Monday, June 9. The stock has declined 17.5% this year, so far.

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