Stock in Focus: Engineering and construction sector company BGR Energy Systems Ltd said that Tamil Nadu Transmission Corporation Limited (TANTRANSCO) has canceled the EPC contract given to it.
The project was connected to the 230/110 KV AIS sub-station at Tirupattur. Under this, 230 KV bay was to be expanded in Palavadi 400 KV sub-station. Also the work of 230 KV transmission line was also included. This included design, manufacturing, supply, installation, testing and commissioning.
For what reason was the order cancelled?
According to BGR Energy, TANTRANSCO has cited project delays in the termination order issued on January 30, 2026. It has been said in the order that the work could not be completed within the stipulated time.
Transmission Corporation has made it clear that liquidated damages will be recovered as per the terms of the contract. Along with this, the cost of unused material and additional expenses incurred on getting the remaining work done by any other agency will also be recovered.
Considering legal options
BGR Energy Systems said it is reviewing this termination order in detail. The Company is considering all legal options and remedies available under the contract and applicable laws. The company also clarified that this development will not have any major or material impact on its current operations or other activities.
Such cases have come to light earlier also
This is not the first such case for BGR Energy. Last year, BGR Energy Systems had received a big GST related relief order. In a rectification order issued by the Assistant Commissioner of GST, Ponneri, Tiruvallur on January 8, 2025, tax liability of ₹35.07 crore was removed, which was fixed in the demand order of August 2024.
Apart from this, in September 2024, the company also received a contract termination notice from Chennai Metropolitan Water Supply and Sewage Board (CMWSSB). The notice was related to the Design, Build and Operate (DBO) project of 45 MLD capacity Tertiary Treatment Reverse Osmosis (TTRO) plant at Kodungaiyur.
Status of BGR Energy shares
Shares of BGR Energy Systems Ltd closed 2.23 per cent higher at ₹332.70 on the BSE on February 3. This stock has risen 225.12% in the last 6 months. At the same time, it has given a return of 144.18% in 1 year. The stock has given multibagger returns of 640.16% in the last 5 years. Its market cap is Rs 2.40 thousand crore.
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