+
Tamil Nadu Transmission Cancels BGR Energy Contract
POWER & RENEWABLE ENERGY

Tamil Nadu Transmission Cancels BGR Energy Contract

Tamil Nadu Transmission has cancelled a contract with BGR Energy on grounds of repeated project delays, in a move that ends a long-running engagement for construction of transmission infrastructure. The state utility said the decision follows an internal review of progress against agreed milestones and multiple notices to the contractor. The termination is intended to allow prompt reallocation of works to preserve overall project integrity and to limit further slippage. The action underlines heightened enforcement of delivery timelines by public utilities overseeing critical power network expansion.

The cancellation is likely to affect BGR Energy's project portfolio and could prompt the company to reassess schedules across related assignments. Tamil Nadu Transmission will initiate procedures to secure completion of the remaining works, including shortlisting alternative contractors and fast-tracking procurement where possible. The utility will also examine contractual remedies, including liquidated damages and claims for recovery of additional costs incurred due to delay. Any transition of works will be managed to maintain site safety and continuity of operations.

Stakeholders including customers, financiers and regulators will watch the progress closely as the termination may influence commissioning timelines for the affected lines and substations. Officials will prioritise steps to mitigate disruption to planned network strengthening and to ensure that the state meets broader energy security objectives. Financial implications will be evaluated without delay and adjustments to implementation schedules communicated to relevant parties. The emphasis will remain on restoring momentum and safeguarding supply reliability.

The utility expects to complete procurement and contractor mobilisation within a revised timeframe and to proceed with accelerated supervision of works thereafter. Market observers will monitor developments for any wider implications on the construction sector and on contractor confidence for public infrastructure assignments. The case highlights the growing emphasis on accountability in delivery of large-scale power projects and the need for robust project management to meet public sector timelines. Authorities will provide updates as the reprocurement process unfolds.

Tamil Nadu Transmission has cancelled a contract with BGR Energy on grounds of repeated project delays, in a move that ends a long-running engagement for construction of transmission infrastructure. The state utility said the decision follows an internal review of progress against agreed milestones and multiple notices to the contractor. The termination is intended to allow prompt reallocation of works to preserve overall project integrity and to limit further slippage. The action underlines heightened enforcement of delivery timelines by public utilities overseeing critical power network expansion. The cancellation is likely to affect BGR Energy's project portfolio and could prompt the company to reassess schedules across related assignments. Tamil Nadu Transmission will initiate procedures to secure completion of the remaining works, including shortlisting alternative contractors and fast-tracking procurement where possible. The utility will also examine contractual remedies, including liquidated damages and claims for recovery of additional costs incurred due to delay. Any transition of works will be managed to maintain site safety and continuity of operations. Stakeholders including customers, financiers and regulators will watch the progress closely as the termination may influence commissioning timelines for the affected lines and substations. Officials will prioritise steps to mitigate disruption to planned network strengthening and to ensure that the state meets broader energy security objectives. Financial implications will be evaluated without delay and adjustments to implementation schedules communicated to relevant parties. The emphasis will remain on restoring momentum and safeguarding supply reliability. The utility expects to complete procurement and contractor mobilisation within a revised timeframe and to proceed with accelerated supervision of works thereafter. Market observers will monitor developments for any wider implications on the construction sector and on contractor confidence for public infrastructure assignments. The case highlights the growing emphasis on accountability in delivery of large-scale power projects and the need for robust project management to meet public sector timelines. Authorities will provide updates as the reprocurement process unfolds.

Next Story
Infrastructure Transport

Second Mountain Tunnel Breakthrough in Palghar Advances High Speed Rail

The Mumbai-Ahmedabad high speed rail (MAHSR) project reached a milestone with the breakthrough of a mountain tunnel in Palghar, Maharashtra. Mountain tunnel MT-six measures 454 metres long and 14.4 metres wide and will accommodate up and down tracks. The breakthrough follows MT-five near Saphale on second January 2026 and the MT-six excavation was completed from both ends using the New Austrian Tunnelling Method. The ministry reported that the tunnelling was completed within 12 months. The New Austrian Tunnelling Method is favoured for its flexibility in complex geology and irregular tunnel s..

Next Story
Infrastructure Transport

Modi Government Pushes Atmanirbhar Container Drive With BCSL MoU

The Union Government advanced a plan to create an integrated, domestically anchored container ecosystem with the signing of a Memorandum of Understanding to establish the Bharat Container Shipping Line (BCSL). The MoU was signed by key agencies including the Shipping Corporation of India and Container Corporation of India alongside major port authorities and Sagarmala Finance Corporation Limited under the Ministry of Ports, Shipping and Waterways, in the presence of senior ministers. The initiative aligns with the Container Manufacturing Assistance Scheme announced in the Union Budget 2026–2..

Next Story
Infrastructure Urban

Ministry Reports Gains In Mobility For Marginalised Communities

The Ministry of Social Justice and Empowerment is implementing skill development, education and rehabilitation schemes to promote socio-economic mobility and sustainable livelihoods for marginalised and disadvantaged communities across the country. Programmes target Scheduled Castes, Other Backward Classes, Economically Weaker Sections, De-notified Tribes and Safai Karamcharis through specialised implementing corporations and empanelled training institutes. Pradhan Mantri Dakshata Aur Kushalta Sampann Hitgrahi Yojana, or PM-DAKSH, provided skill training and placement support through the Nati..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Open In App