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NTPC Terminates Contract for 400 MWh BESS Project in Mouda
NTPC has terminated a ₹413.37 crore (approx. €46 million) contract with G R Infraprojects for a 400 MWh BESS project in Mouda, India. The termination is due to the contractor's failure to meet contractual obligations and insufficient project progress. NTPC has encashed securities worth approximately ₹91 crore and will re-tender the project to expedite its implementation. The project is crucial for grid flexibility and renewable energy integration in India.
The Indian state-owned power generator NTPC has terminated a contract with G R Infraprojects (GRIL) for the development of a large-scale 400 MWh Battery Energy Storage System (BESS). This project, valued at ₹413.37 crore (approximately €46 million), was planned for the Mouda Super Thermal Power Station in Maharashtra.
NTPC stated that the termination resulted from the contractor's failure to meet contractual obligations and achieve sufficient project progress. The contract was awarded in March 2026 with a scheduled completion within fifteen months. According to NTPC, critical project activities experienced significant delays despite repeated engagements with GRIL. Following the lack of corrective measures, NTPC decided to terminate the contract.
As a consequence of the termination, NTPC has encashed performance and other securities totaling approximately ₹91 crore (around €10 million), in accordance with the contractual provisions. The company has also initiated the process to re-tender the project, with the costs and risks to be borne by GRIL. The objective is to ensure a swift re-award and timely implementation.
The Mouda BESS project is crucial for enhancing grid flexibility and facilitating the integration of renewable energy sources into India's power system. It forms part of NTPC's broader strategy to deploy utility-scale battery storage alongside conventional power plants, as energy storage becomes increasingly vital for balancing renewable energy generation.
GRIL had previously disclosed in September the termination of its BESS EPC arrangements with NTPC. The company cited continuing force majeure, war-risk circumstances, and contractual issues as reasons and has invoked an applicable dispute resolution mechanism. The financial impact of this is currently being assessed.
Despite the contractual disputes between the two parties, the 400 MWh storage project remains a priority for NTPC, with the planned re-tendering as the next step.
Source: Sarkaritel.com
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