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NTPC cancels ₹413 crore BESS contract over contractor's non-performance

NTPC terminated a ₹413 crore Battery Energy Storage System contract with GRIL due to failure to meet deadlines and progress, encashing ₹91 crore from bank guarantees.

NTPC cancels ₹413 crore BESS contract over contractor's non-performance
AI Generated | MinuteBrief Team

NTPC Ltd has terminated a ₹413.37 crore contract awarded to GR Infraprojects Ltd (GRIL) for the installation of a 400 MWh Battery Energy Storage System (BESS) at the Mouda Super Thermal Power Station in Maharashtra. The contract, granted in March 2026, was scheduled for completion within 15 months.

However, NTPC stated that GRIL failed to meet its contractual obligations and did not make sufficient progress on the project, prompting termination of the agreement. Following the cancellation, NTPC invoked contractual provisions and encashed ₹91 crore from the bank guarantees provided by GRIL.

This development occurs as battery storage gains importance in India's power system, enhancing grid flexibility and aiding renewable energy integration. NTPC will now seek alternative solutions to implement the planned energy-storage capacity.

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