On March 6, Olectra Greentech’s stock price went up by 5% after the Telangana State Road Transport Corporation said it would buy electric buses from the company. Additionally, TSRTC granted EVEY Trans Private Limited two letters of award for 550 electric buses, of which 500 are for intra-city operations and 50 are for inter-city operations.
The contracts will be based on an OPEX/gross cost model and last for 12 and 10 years, respectively. The buses will cost Olectra Greentech Rs 1,000 crore. They will receive the order and deliver the buses over the course of 16 months. The buses’ upkeep will fall under Olectra’s purview throughout the duration of the contract.
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Olectra and EVEY will conduct their business relations on an arm’s length basis and as related party transactions. Olectra Greentech was trading at Rs. 536.65 at 09:51 hrs. on the BSE, up 2.98%. The company will purchase the buses from Olectra Greentech and receive them over a 16-month period. Fifty of the buses will be utilized for inter-city transportation, while the remaining 500 will be employed for intra-city travel. For 12 years and 10 years, respectively, the two contracts will be based on a gross cost contract and an operational expenses model. During the term of the contract, Olectra will also handle the maintenance of these buses.
Ola Electric, which is a subsidiary of ANI Technologies, was established in 2017 with the goal of transitioning to mass electric mobility and decreasing the reliance of Ola’s cabs on fuel. The company launched a pilot program in Nagpur in May 2017. Which involved installing charging stations across the city and purchasing electric taxis, e-buses, and e-rickshaws from OEM partners.