The Telangana Industrial Infrastructure Corporation (TGIIC) has fined over ₹2.57 crore on electric vehicle maker Olectra Greentech for delay in completing a greenfield EV manufacturing plant in Hyderabad.
A penalty notice of ₹2,57,87,484 inclusive of GST has been received from TGIIC for the period from November 12, 2023 to November 11, 2025. The penalty is due to the delay in the full completion of the ongoing construction of the facility at Seetharampur Industrial Park in Hyderabad, Olectra Greentech said in a filing on Thursday.
TGIIC ordered the company to pay the fine within 7 days of receiving the order. Olectra Greentech said that under a purchase agreement dated November 11, 2021 with TGIIC, the company acquired 150 acres of land in the industrial park. In response to the company’s request to extend the deadlines, set up facilities and issue the required No Objection Certificate (NOC) to obtain credit facilities against the property, TGIIC invoked the penalty clause set out in the purchase agreement and assessed a penalty for the delay in completing the construction.
However, the company has already partially started commercial operations at the new facility within the timeframes stipulated in the purchase agreement, Megha Group said. Apart from the amount of the fine, there is no significant financial or operational impact for the company, he said.
Olectra focuses on the electric bus and e-truck segments. It has a technology tie-up with China’s EV major BYD.
Senior executives told investors last month that the greenfield plant had partially started operations and reached a capacity of 2,500 vehicles per shift. The plant can reach a capacity of 5,000 if operated in two shifts, they said, adding that the market was 4,200 vehicles last year and is expected to be around 6,000 vehicles. The company has the highest market share and is well positioned with available capacity to meet market demand. The second phase of expansion will occur as the market grows.
Published – 18 Dec 2025 19:33 IST
