Rumour: Govt. to issue notice to Tata Motors over EV order

According to a media report, the Government of India might issue a show-cause notice to Tata Motors seeking an explanation for not scrapping the first bulk order for electric vehicles (EV) as it has allegedly broken the terms of the contract.

The state-owned Energy Efficiency Services Ltd. (EESL), which is responsible for the procurement of EVs for the government has reportedly approached the law ministry and hence, it is believed that a notice could be issued soon.

Last month, it was reported that government officials were refusing to use EVs supplied by Tata Motors and Mahindra as they did not meet range and performance expectations. A media report claimed that Tata Motors is seeking changes to the specifications before the next lot of cars is delivered. However, the company has clarified that it has not sought any such changes. Mahindra is reportedly seeking to downgrade battery and charging specifications as well.

Tata Motors and Mahindra had bagged orders to supply 5,000 cars each to the government, which was planning to use them as replacements for petrol and diesel vehicles.

Source: Economic Times