The Telangana Industrial Infrastructure Corporation (TGIIC) has imposed a penalty of ₹2.58 crore on EV maker Olectra Greentech due to delays in completing its greenfield electric vehicle manufacturing facility in Hyderabad. The development brings attention to compliance requirements tied to large-scale industrial investments and project execution timelines.
As disclosed in a regulatory filing, the company received a demand notice from TGIIC for ₹2,57,87,484, including GST. This penalty applies to the period from November 12, 2023, to November 11, 2025, and is related to the incomplete construction of the manufacturing unit at the Industrial Park in Seetharampur, Hyderabad. TGIIC has instructed the company to remit the penalty within seven days of receiving the notice.
The issue traces back to a sale agreement dated November 11, 2021, under which EV maker Olectra Greentech acquired 150 acres of land from TGIIC to establish the manufacturing facility. The agreement outlined specific deadlines for completing construction. While the company had sought extensions and requested the issuance of a no-objection certificate (NOC) to obtain credit facilities against the land, TGIIC invoked the penalty clause due to the delay in full project completion.
Despite this setback, the company stated that it had partially commenced commercial operations at the facility within the timelines mentioned in the agreement. Management clarified that, apart from the penalty amount, there would be no material financial or operational impact on the company’s business.
EV maker Olectra Greentech focuses on the electric bus and electric truck segments and operates with a technology partnership with Chinese EV major BYD. Senior executives recently informed investors that the greenfield plant has already begun partial operations and currently supports a production capacity of 2,500 vehicles per shift. With two shifts, the capacity can scale up to 5,000 vehicles.
Market data shared by the company indicates that the EV market stood at around 4,200 vehicles last year and is expected to grow to approximately 6,000 vehicles. With the highest market share and sufficient capacity in place, EV maker Olectra Greentech is well-positioned to meet rising demand. The company has also indicated that the second phase of expansion will be executed as the market continues to grow, reinforcing its long-term growth strategy.
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