New Delhi: State-run power major NTPC on Saturday said that it has terminated a contract awarded to GR Infraprojects Ltd (GRIL) for a 400-megawatt-hour Battery Energy Storage System (BESS) project at the Mouda Super Thermal Power Station in Maharashtra.
According to the company, the project was terminated due to failure to meet contractual obligations and achieve the required project progress. The contract which was awarded in March valued at Rs 413.37 crore.
It was a key component of NTPC’s efforts to strengthen grid flexibility and support the integration of renewable energy into India’s power system.
Moreover, the project was scheduled for completion within 15 months.
The project witnessed significant delays in critical activities despite repeated engagements with the contractor, according to the company.
It also noted that had issued a contractual notice directing GRIL to take immediate corrective measures to address project shortcomings. However, the required remedial actions were not undertaken.
As a result, NTPC terminated the contract with immediate effect and encashed available performance and other securities amounting to around Rs 91 crore in accordance with contractual provisions.
The company said it has already initiated the process for re-tendering the project at the risk and cost of GRIL, as permitted under the contract.
NTPC added that steps are being taken on priority to enable an early re-award and ensure timely implementation of the strategically important project.
The Mouda BESS project forms part of NTPC’s broader push to deploy utility-scale battery energy storage systems alongside its conventional generation assets.
Shares of NTPC on Friday ended at Rs 324, down 1.62 per cent. The stock has touched a 52-week high of Rs 414.40 and a 552-week low of Rs 315.55.
In the last five year, the PSU stock has gained more than 150 per cent.
(IANS)
