Olectra Greentech Ltd has issued a formal clarification denying reports of penalties imposed on its fleet of 150 electric buses operating in Pune. The statement comes in response to widespread media coverage suggesting that the Pune Mahanagar Parivahan Mahamandal Limited (PMPML) had levied a Rs 55 crore fine on the company due to battery-related failures in its electric buses. Olectra has asserted that the penalty pertains to a limited subset of vehicles and does not apply to the full fleet deployed under its contract.
The clarification aims to address investor concerns and public confusion following reports of service disruptions and technical issues affecting Pune’s electric bus network. Olectra maintains that it is actively cooperating with PMPML to resolve operational challenges and ensure uninterrupted service for commuters.
Key Highlights From The Clarification
- Olectra Greentech denies penalty on entire fleet of 150 electric buses in Pune
- Rs 55 crore fine pertains only to a subset of buses with battery issues
- PMPML ordered battery replacements in 25 affected buses at Olectra’s cost
- No blanket penalty or service suspension has been imposed on the full fleet
- Company reiterates commitment to quality and contractual compliance
Background Of The Controversy
The issue surfaced after PMPML reported frequent breakdowns in a portion of its electric bus fleet, citing substandard battery performance and service delays. According to PMPML officials, 45 buses experienced battery failures over a 45-day period, prompting the transport authority to impose a financial penalty and demand corrective action.
Initial reports suggested that the penalty applied to all 150 buses supplied by Olectra, triggering speculation about contract termination and operational fallout. However, Olectra’s latest statement clarifies that only a limited number of buses were affected and that the company is bearing the cost of battery replacements as per its contractual obligations.
Operational Status And Service Continuity
Despite the technical setbacks, Olectra confirmed that the majority of its Pune fleet remains operational and continues to serve daily commuters. The company has deployed maintenance teams and diagnostic tools to monitor battery health and prevent further disruptions.
Key operational measures include:
- Real-time battery diagnostics and predictive maintenance protocols
- On-site technical support at PMPML depots
- Scheduled battery replacements for affected units
- Coordination with battery suppliers for quality assurance
Olectra emphasized that its Pune deployment is part of a broader commitment to sustainable urban mobility and that it remains aligned with PMPML’s goals of reducing carbon emissions and modernizing public transport.
Investor Sentiment And Market Impact
Following the initial reports, Olectra’s stock experienced mild volatility, reflecting investor concerns over reputational risk and potential contract liabilities. However, the company’s clarification helped stabilize sentiment, with analysts noting that the issue appears contained and unlikely to impact long-term fundamentals.
Olectra’s broader order book includes contracts for over 5,000 electric buses across multiple states, and its Pune operations represent a fraction of its national deployment. The company has also received a fresh lifeline from the Maharashtra government, which recently reinstated its Rs 10,000 crore contract for 5,150 electric buses after reviewing delivery schedules and subsidy delays.
Strategic Outlook And Future Plans
Olectra reiterated its commitment to quality, compliance, and customer satisfaction. The company plans to:
- Strengthen battery procurement standards and vendor audits
- Expand its technical support footprint across key urban centers
- Invest in R&D for next-generation battery systems and diagnostics
- Collaborate with transport authorities to improve service reliability
Sources: The Bridge Chronicle, Punekar News, EV Story
