By Eva Richardson | The Logistic News | March 31, 2025
In a move set to reshape India’s heavy-duty logistics landscape, North Eastern Carrying Corporation Ltd (NECC) has secured a pivotal five-year contract with Tata Steel, marking its official entry into the electric vehicle freight sector.
The agreement entails NECC transporting steel products from Tata Steel’s Sahibabad plant using a fleet of electric heavy commercial vehicles (E-HCVs), supporting the steel giant’s decarbonization strategy. The partnership is being hailed as a turning point in the evolution of India’s industrial logistics, with both companies aligning on a shared commitment to environmental sustainability.
“This is more than a logistics contract—it’s a strategic alignment between industrial strength and climate-conscious operations,” said Mr. S. P. Bansal, Managing Director of NECC. “We are not just moving steel—we’re moving towards a cleaner future.”
Market Reaction & Infrastructure Push
Following the announcement, NECC’s stock surged by over 15% in a single session, reflecting market confidence in its green transition. The company’s shares peaked at ₹23.99, driven by growing investor optimism around sustainable logistics solutions.
To support this operational shift, NECC is investing in a 17,000 sq. meter state-of-the-art logistics park near Gurugram, designed to accommodate its expanding electric fleet and integrate digital freight management tools. According to internal reports, the facility—funded entirely from NECC’s reserves—will also include EV charging infrastructure and temperature-controlled warehousing capabilities.
From Legacy to Future-Ready
Founded in 1981, NECC has long been a fixture in Indian surface logistics, with services extending into Nepal and Bhutan. With this EV move, the company aims to position itself as a future-ready logistics provider ready to meet the demands of a decarbonizing supply chain.
The timing could not be more strategic. With India’s government accelerating incentives for electric freight and Tata Steel pledging net-zero carbon goals, NECC’s pivot puts it at the heart of a logistical transformation.
Financial Health and Outlook
The company reported a revenue of ₹81 crore for Q3 FY25, with a net profit of ₹1.94 crore. Cumulatively, for the April–December 2024 period, revenue stood at ₹241 crore with ₹8.49 crore in net profit—a performance analysts say underscores NECC’s stable financial footing to support such a green expansion.
Industry experts view the move as a blueprint for future partnerships in sustainable freight. “NECC’s entry into electric logistics with a marquee client like Tata Steel signals that green supply chains are no longer aspirational—they’re operational,” said logistics consultant Anil Kohli.
The Road Ahead
Deliveries under the contract are expected to commence by Q2 2025, with NECC planning to scale its electric fleet gradually in collaboration with EV manufacturers. Initial routes will serve northern India, with future plans to extend to western and southern corridors depending on demand.
As India’s logistics sector braces for the dual challenge of modernization and decarbonization, NECC’s bold leap into electric freight—backed by one of the country’s most influential industrial players—offers a compelling glimpse into the future of smart, clean logistics.
