"Ashok Leyland is proud to receive this order and is thankful to government of Tamil Nadu for this timely order," Ashok Leyland Managing Director Vinod K Dasari said in a filing to the BSE.
The company did not share financial details.
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The Institute of Road Transport is the nodal organisation that procures buses for all state transport corporations.
Ashok Leyland shares fell 0.54% to Rs 18.50 at the close on the BSE today.