TANGEDCO cancels energy deal with BGR Energy Systems

28 Apr 2021 CW Team

Chennai-based engineering services utility BGR Energy Systems told the media that Tamil Nadu Generation and Distribution Corporation (TANGEDCO) has cancelled the Rs 4,442.75 crore contract for setting up the 660 MW Ennore Thermal Power Station and forfeited a Rs 5 crore deposit.

BGR Energy Systems had received the letter of intent (LOI) from TANGEDCO for the execution of 1x660 MW supercritical Ennore thermal power station expansion project under the engineering procurement and construction (EPC) mode for Rs 4,442.75 crore. The company told the media it has been notified by TANGEDCO that the 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 earnest money deposit (EMD) of Rs 5 crore.

BGR has moved the Madras High Court for quashing the said cancellation of LOI and consequent direction to accept bank guarantees as per Government of India instructions issued in the wake of the Covid-19 pandemic.

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