West Bengal State Electricity Distribution Company Limited (WBSEDCL) Withdraws Tender Award To Power Mech Unit Citing Administrative Reasons

WBSEDCL Decision And Context
The LoA, originally awarded in January 2026, was linked to the development of a large-scale battery energy storage system in West Bengal. WBSEDCL cited administrative exigencies as the reason for annulling the tender, clarifying that the decision was not due to any default or non-compliance by Power Mech Projects or its subsidiary.

Financial And Operational Impact
The annulment results in a reduction of approximately ₹1,563 crore from Power Mech’s order pipeline. However, the company confirmed that all bank guarantees have been released without forfeiture, ensuring no financial penalty. While this impacts short-term growth visibility, Power Mech emphasized its strong portfolio across power, infrastructure, and industrial projects.

Key Highlights

• WBSEDCL annuls tender for battery energy storage project
• LoA rescinded due to administrative exigencies
• No default or penalty imposed on Power Mech Projects
• Bank guarantees released without forfeiture
• Order book reduced by ₹1,563 crore

Sources: Company filings, stock exchange disclosures, media reports