Electric bus manufacturer Olectra Greentech has awarded the contract for the construction of its new greenfield electric vehicle (EV) manufacturing facility at Seetharampur in Hyderabad to Megha Engineering and Infrastructures.

The proposed value of the contract is ₹3.95 billion (~$48.12 million).

As per the contract, the facility will be developed on 150 acres of land at Seetharampur and completed within 12 months from the shareholders’ final approval date, i.e., July 19, 2023.

The greenfield EV manufacturing facility will have a projected annual production capacity of 5,000 buses/trucks and other EVs with scalability of up to 10,000 units.

The company had previously floated a public tender to identify a suitable vendor for the construction of the manufacturing facility.

Pursuant to the tender, Suroj Buildcon and Megha Engineering and Infrastructures participated in the bidding process. The price quoted by Megha Engineering and Infrastructures was lower than that quoted by the other bidder and was also less than the company’s estimated cost for the project.

Based on the above evaluation, the company’s board of directors, in their meeting held on June 19, 2023, evaluated all possible options available and approved the engagement of Megha Engineering and Infrastructures to establish the greenfield EV manufacturing facility.

As of March 2023, Olectra Greentech has an order book of 3,394 buses on hand and has delivered 1,100 plus electric buses.

The company is targeting a growth of about 2.5 to 3x to the current number, which amounts to approximately about 1,200 to 2,500 electric buses and tippers in the financial year (FY) 2024.

Currently, the company has the capacity to manufacture 125 e-buses each month.

The company recently recorded an increase of 86% in profit after tax to ₹656 million (~$7.99 million) in FY 2023.

Recently, Olectra Greentech received a letter of intent from the Maharashtra State Road Transport Corporation relating to the supply, operation, and maintenance of 5,150 electric buses and allied electrical and civil Infrastructure on a gross cost contract basis.

During the fourth quarter of FY 2023, the company added three more new customers to its portfolio. The new customers are the Karnataka State Road Transport Corporation, the Maharashtra State Road Transportation Corporation, and Thane Municipal Corporation, by delivering intercity and city electric buses.

Earlier this year, Olectra Greentech received an order for 550 electric buses from the Telangana State Road Transport Corporation (TSRTC). Olectra said its e-buses would significantly reduce the noise and emission levels in Hyderabad.