Tamil Nadu Transmission cancels BGR Energy contract over project delays

Engineering and construction major BGR Energy Systems Ltd on Tuesday (February 3) said Tamil Nadu Transmission Corporation Ltd (TANTRANSCO) has terminated the EPC contract it had awarded to the company for the design, manufacturing, supply, erection, testing and commissioning of the 230/110 KV AIS substation at Tirupattur, 230 KV bay extension at Palavadi 400 KV substation, and associated 230 KV transmission line works.

The termination order, dated January 30, 2026, cites alleged delays and non-completion of the project within the stipulated timelines. TANTRANSCO has indicated recovery of liquidated damages, cost of materials not consumed, and differential costs for executing the remaining work through alternative agencies, in line with the contract terms.

BGR Energy said it is examining the termination order and its legal options, including remedies available under the contract and applicable law. The company added that there is no material impact on its operations or other activities.

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Last year, BGR Energy Systems Ltd announced the receipt of a rectification order dated January 8, 2025, from the Assistant Commissioner of GST, Ponneri, Tiruvallur. The rectification order has dropped the tax liability of ₹35.07 crore, which was previously determined in a demand order dated August 31, 2024.

Earlier in September 2024, BGR Energy Systems said it had received a notice of contract termination from the Chennai Metropolitan Water Supply and Sewage Board (CMWSSB) regarding the design, build, and operate

(DBO) project for a 45 MLD capacity tertiary treatment reverse osmosis (TTRO) plant in Kodungaiyur.

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Shares of BGR Energy Systems Ltd ended at ₹332.70, up by ₹7.25, or 2.23%, on the BSE today, February 3.