The termination pertains specifically to the Balance of Plant (BoP) package, including associated civil works for the 1 x 800 MW power project. The notice of termination was issued by TNPGCL on July 18, 2025, and officially received by BGR Energy on July 22, 2025, the company said in a filing to stock exchanges.
According to BGR Energy, the contract was terminated on grounds that included failure to meet key project obligations, incomplete critical systems, and non-compliance with contractual requirements related to insurance renewals and guarantee extensions.
Despite the termination, the company stated that there would be no significant financial or operational impact arising from this development. BGR Energy also noted that an arbitration application concerning the matter is currently pending before the Hon’ble High Court of Madras, and the company is hopeful of a favourable outcome.
