TANTRANSCO Terminates BGR Energy's EPC Contract for Substation Project Due to Delays
TANTRANSCO has terminated its EPC contract with BGR Energy Systems for a 230/110 KV substation project in Tirupattur due to delays and non-completion. The termination order, issued on January 30, 2026, allows TANTRANSCO to pursue liquidated damages and other costs, while BGR Energy is assessing its legal options but reports no significant operational impact. BGR Energy's shares rose by 2.23% to ₹332.70 on February 3, following a recent tax liability reduction.
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Tamil Nadu Transmission Corporation Ltd (TANTRANSCO) has terminated the EPC contract with BGR Energy Systems Ltd for the design and construction of a 230/110 KV substation in Tirupattur and related transmission line works, citing delays and non-completion. The termination order, dated January 30, 2026, indicates that TANTRANSCO may seek to recover liquidated damages, unutilized material costs, and differential execution costs.
BGR Energy is currently evaluating the termination and its legal options. Despite the contract termination, BGR Energy noted no significant impact on its operations. Additionally, in January 2025, BGR Energy received a rectification order reducing a previous tax liability by ₹35.07 crore. Shares of BGR Energy closed at ₹332.70, an increase of 2.23%, on February 3.
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