Overview

• Pratap Sarnaik directed termination of the Rs 10,000 crore wet lease agreement for 5,150 buses after only 240 were delivered against a target of 1,000 by May 22.
• Olectra Greentech’s shares plunged as much as 14% in intraday trading on Tuesday amid investor doubts over its delivery performance.
• MSRTC issued seven show-cause notices and imposed roughly Rs 4 crore in penalties while investing more than Rs 600 crore in charging infrastructure for the planned fleet.
• The cancelled order halved Olectra’s order book to about 5,000 buses and highlighted its rising borrowings and supply chain dependencies.
• Analysts warn the contract void could slow India’s national electric bus programme targets and undermine confidence in large single-vendor deals.