New Delhi, June 9 (IANS) Olectra Greentech Limited said on Monday that the company’s chairman and managing director (MD) KV Pradeep has resigned due to personal reasons.
The company said in the stock exchange filing, “The date of their resignation will be told in the coming time.”
Recently, Olectra Greentech is in trouble due to the cancellation of major orders given by the state governments, which has caused heavy losses to the company.
The contract of 5,150 buses given to the company by the Maharashtra government in late May has been canceled.
In a post on the social media platform X, Maharashtra Transport Minister Pratap Saranaik said that the company had failed to give a single bus to hand over the company to be handed over by 22 May. Due to the inaction of the supplier, officers have been directed to cancel the tender for 5,150 buses.
It is believed that the company has lost more than Rs 9,000 crore due to the cancellation of this contract.
With the cancellation of the contract by the Maharashtra government, Olectra Greentech’s order book has come down from 10,000 buses to about 5,000.
Apart from this, the company has lost about Rs 70 crore due to shortening of contracts of 50 intercity buses provided by the Telangana government. According to the information, the contract was given to the company on March 6, 2023 and it was to be completed by July 2024. However, only 10 buses were delivered under this order, due to which the state government decided to reduce the number of buses in the order.
Olectra Greentech’s stock closed at 1,224.60 on the National Stock Exchange (NSE) with a gain of 0.22 percent. Currently, the stock is about 37.5 percent below its 52 -week highest level of Rs 1,960.
-IANS
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