BGR Energy Systems Share Price in Focus as Tamil Nadu Transmission Terminates Project

Tamil Nadu Transmission Corporation Limited (TANTRANSCO) has terminated an engineering, procurement and construction (EPC) contract awarded to BGR Energy Systems Ltd, citing delays in project execution. 

The development has drawn market attention as the company assesses its contractual remedies, even as its shares ended the session higher.

Details of the Terminated Project

The cancelled contract covered the design, manufacturing, supply, erection, testing and commissioning of a 230/110 kV air-insulated substation at Tirupattur, a 230 kV bay extension at the Palavadi 400 kV substation, along with related 230 kV transmission line works. 

The termination order was issued on January 30, 2026, according to company disclosures.

Reasons Cited by TANTRANSCO

TANTRANSCO stated that the decision to terminate the contract was due to alleged delays and the failure to complete the project within the agreed timelines.

The utility indicated that the termination was carried out in accordance with the contractual provisions governing execution schedules.

Possible Financial Recoveries

As per the termination notice, TANTRANSCO may seek to recover liquidated damages, the cost of materials not utilised, and differential costs incurred in completing the remaining work through alternative contractors. 

These recoveries would be pursued as permitted under the terms of the EPC agreement.

Company Response and Legal Review

BGR Energy Systems said it is reviewing the termination order and evaluating legal remedies available under the contract and applicable laws. 

The company also clarified that the development is not expected to have a material impact on its ongoing operations or other business activities.

BGR Energy Systems Share Price Performance

Despite the contract termination, BGR Energy Systems’ shares closed higher on February 3, 2026. The stock ended the session at ₹336, up ₹12.40 or 3.83% from the previous close of ₹323.60. During the day, the shares traded between ₹325.95 and ₹339.75.

Read More: NTPC Green Energy Share Price in Focus; Signs MoU for Green Inputs Supply to Proposed Green Urea Plant.

Conclusion

The termination of the EPC contract by TANTRANSCO adds to the contractual challenges faced by BGR Energy Systems, with the company now considering its legal options. While potential recoveries by the utility remain a risk factor, the broader operational impact will depend on the outcome of discussions and any subsequent proceedings.

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