Why Did Olectra Greentech's CMD Pradeep Resign?
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Synopsis
In a surprising move, KV Pradeep, the CMD of Olectra Greentech Ltd, has resigned due to personal reasons, causing a stir in the electric vehicle sector. The company is also facing significant challenges with a major contract cancellation by the Maharashtra government, leading to concerns about the future of its operations.
Key Takeaways
- KV Pradeep has resigned as CMD of Olectra Greentech.
- The Maharashtra government has canceled a major order for 5,150 electric buses.
- Olectra's share price has dropped significantly in response to these developments.
- The state has invested over Rs 600 crore in charging infrastructure.
- The company's order book has been halved due to contract cancellations.
New Delhi, June 9 (NationPress) Olectra Greentech Ltd revealed on Monday that the company’s Chairman and Managing Director, KV Pradeep, has stepped down from his position “due to personal reasons.”
The announcement was made through a filing to the stock exchange, where the company also noted that Pradeep has resigned as a director.
Olectra Greentech faced challenges recently when the Maharashtra government decided to cancel an order for 5,150 electric buses intended for the state transport service.
In a statement on social media platform X, Maharashtra Transport Minister Pratap Sarnaik highlighted that the company had not delivered any of the 1,000 buses that were supposed to be handed over by May 22. He indicated that officials had been instructed to revoke the tender for the 5,150 buses due to the supplier's lack of action, raising concerns over the project's feasibility.
“We had an agreement with Olectra since January 2024, which stipulated the delivery of over 2,000 buses by this time. We organized our operations based on this timeline to serve the public, but only 220 buses have been delivered so far,” Sarnaik expressed.
He added that the government had anticipated receiving at least 1,200 buses by May 2025, but that expectation has not been met. “How long are we supposed to wait? We have sought legal counsel to proceed with the cancellation of the contract,” Sarnaik stated.
Following this news, Olectra Greentech Ltd's share price dropped as much as 14 percent in the stock market, reaching an intraday low of Rs 1,160 during morning trading on May 27.
The state government has already allocated over Rs 600 crore to develop charging infrastructure in expectation of the complete fleet. “It’s not that their buses are defective. We just need the buses to serve the community. We can’t wait indefinitely for a contractor,” Sarnaik elaborated.
He also mentioned that the government has sought legal advice and is preparing to initiate court action.
With the cancellation of the Maharashtra government contract, Olectra Greentech’s order book has been reduced by half, from over 10,000 buses to approximately 5,000.
Olectra has denied receiving any formal termination notice. However, Sarnaik pointed out that the state government has issued several notifications, including three official communications from the Principal Secretary himself.
Point of View
The resignation of KV Pradeep raises important questions about leadership stability in Olectra Greentech Ltd. The company's challenges with the Maharashtra government highlight the complexities and risks involved in public-private partnerships, especially in the rapidly evolving electric vehicle sector. As we continue to advocate for sustainable transportation solutions, Olectra's situation serves as a critical case study for industry stakeholders.
NationPress
09/06/2025
Frequently Asked Questions
What led to KV Pradeep's resignation?
KV Pradeep resigned from his position as CMD of Olectra Greentech Ltd mainly due to personal reasons, as stated in the company's announcement.
What issues is Olectra Greentech facing with the Maharashtra government?
Olectra Greentech is facing significant challenges as the Maharashtra government has canceled an order for 5,150 electric buses due to the company's failure to deliver the expected units on time.
How has the stock market reacted to the news?
Following the announcement of Pradeep's resignation and the cancellation of the bus order, Olectra Greentech's share price fell by as much as 14 percent.
What investments has the Maharashtra government made in Olectra Greentech?
The Maharashtra government has invested over Rs 600 crore in building charging infrastructure in anticipation of deploying the electric bus fleet.
What is the current status of Olectra's order book?
With the cancellation of the Maharashtra government contract, Olectra Greentech's order book has been reduced from over 10,000 buses to around 5,000.
