Olectra Greentech Faces ₹2.58 Crore Penalty for Delay in EV Plant Construction

Key Highlights

• ₹2.58 crore penalty imposed by TGIIC.

• Delay linked to Hyderabad EV facility.

• 150-acre Greenfield manufacturing project.

• Partial operations already commenced.

• No major financial or operational impact.

Electric vehicle manufacturer Olectra Greentech Limited has received a penalty notice of ₹2.58 crore (including GST) from the Telangana Industrial Infrastructure Corporation Limited (TGIIC) for delays in completing its new manufacturing facility in Hyderabad.

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Penalty Imposed for Facility Delay

The penalty amounting to ₹2,57,87,484 has been imposed for the delay period between November 12, 2023, and November 11, 2025. The issue relates to Olectra’s 150-acre Greenfield electric vehicle manufacturing facility located at Seetharampur Industrial Park, Hyderabad.

TGIIC has asked the company to pay the penalty within seven days from the date of receiving the order. The communication regarding the penalty was issued on December 17, 2025.

Reason Behind the Penalty

The penalty was imposed after Olectra Greentech sought an extension of timelines to complete the facility. The company had also requested the issuance of a No-Objection Certificate (NOC), which is required to obtain credit facilities against the scheduled property.

Following this request, TGIIC enforced the penalty clause mentioned in the sale agreement dated November 11, 2021, which was signed when Olectra acquired the land for setting up the EV manufacturing unit.

Also Read: ElectriGo Launches Electric Bus Leasing in India, Partners with GEMS for 50 E-Buses

Olectra’s Clarification

Olectra Greentech has clarified that it has partially commenced commercial operations at the Seetharampur facility within the timelines specified in the original agreement.

In its filing to the stock exchanges, the company stated that apart from the penalty amount, there is no material impact on its financial position or operational activities.

Regulatory Disclosure

The company disclosed the development under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, ensuring transparency for investors and stakeholders.

Despite the penalty, Olectra Greentech maintained that its overall business operations remain stable and unaffected.

Also Read: Kerala Moves Ahead with India’s First State-Led Electric Truck Corridor on NH-66

CMV360 Says

Olectra Greentech has been penalized ₹2.58 crore by TGIIC for delays in completing its EV manufacturing facility in Hyderabad. The penalty follows an extension request made by the company under the original land sale agreement. However, Olectra has clarified that partial commercial operations have already started, and the penalty will not have any material impact on its financial health or ongoing business operations.