TANGEDCO cancels EPC contract awarded to BGR Energy Systems

The Tamil Nadu Generation and Distribution Corporation (TANGEDCO) has cancelled an engineering, procurement and construction (EPC) contract of Rs 4,442.75 billionwith BGR Energy Systems, for setting up of 660 MW Supercritical Ennore Thermal Power Station Expansion Project.

The award has been cancelled by TANGEDCO because of non-submission of bank guarantees for security deposit and performance bank guarantee by the company.TANGEDCO has forfeited the earnest money deposit (EMD) of Rs 50million. BGR has moved the Madras high court requesting for annulment of the cancellation of the award and consequent direction to accept bank guarantees as per the government’s instructions issued in the wake of the pandemic.

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