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TANGEDCO cancels contract for Ennore Thermal Power Station expansion project

Monday, 26 Apr 2021
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The Tamil Nadu Generation and Distribution Corporation (TANGEDCO) has cancelled the contract for execution of supercritical Ennore Thermal Power Station expansion project. 
 
BGR Energy Systems had secured engineering, procurement and construction (EPC) contract by TANGEDCO for execution of one x 660 MW supercritical Ennore Thermal Power Station expansion project under EPC for Rs 4,442.75 crore.  
 
The company has received a letter dated 23 April 2021 from TANGEDCO that the letter of intent (LOI) regarding the award of contract has been cancelled for non-submission bank guarantees for security deposit and performance bank guarantee by the company and consequential forfeiture of EMD of Rs five crore. 
 
The company has moved the High Court of Madras for quashing the said cancellation of LOI and consequent direction to accept bank guarantees as per the government of India instructions issued in the wake of the pandemic caused by COVID-19.

 

 
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