₹2,600 Cr Power Project Axed—BGR Energy Faces Major Setback in Tamil Nadu

BGR Energy Systems Ltd has received a formal termination letter from Tamil Nadu Power Generation Corporation Ltd (TNPGCL) for its ₹2,600.02 crore EPC contract. The project involved Balance of Plant (BOP) and allied civil works for the 1x800 MW North Chennai Super Critical Thermal Power Project, Stage III.

 

Key Highlights:

 

- Termination dated July 18, 2025, officially received by BGR on July 22

 

- TNPGCL cited non-fulfillment of key obligations, incomplete systems, and lapses in insurance and guarantees

 

- The matter is currently under arbitration before the Madras High Court

 

- BGR clarified that the termination has no immediate material impact on its financials or operations

 

Strategic Context:

 

This marks another setback in BGR’s engagement with Tamil Nadu’s power sector, following earlier contract cancellations. The company remains hopeful for a favorable legal resolution.

 

Sources: Business Upturn, The Commune, New Indian Express, MarketScreener.