NTPC terminates Rs 413 crore Mouda BESS contract after contractor default

According to a release by the company, the contract, awarded in March 2026, was scheduled for completion within 15 months. However, the project faced significant delays in critical activities, and GRIL failed to take the required corrective measures after NTPC issued a contractual notice, the company said in a statement.

Following the termination, NTPC has encashed available securities amounting to approximately Rs 91 crore in line with the contractual provisions.

NTPC said it has already initiated the process to re-tender the project at the risk and cost of GRIL, with measures being taken on priority to facilitate its early re-award and timely implementation.

The Mouda BESS project is intended to strengthen grid flexibility and support the integration of renewable energy, making timely implementation important for NTPC's broader storage deployment plans.

The company said the project is part of its wider efforts to deploy battery energy storage alongside its conventional generation assets. NTPC has been pursuing BESS projects across multiple locations as energy storage assumes a larger role in balancing an increasingly renewable-heavy power system.

The termination comes after the project failed to meet the required progress despite the contractual notice seeking immediate remedial action. NTPC said the next focus would be on re-awarding the project and ensuring its timely execution.

The company had awarded the project for a total contract value of Rs 413.37 crore in March, with the 400 MWh system planned at the Mouda Super Thermal Power Station.

Going ahead, NTPC said it is taking necessary measures to facilitate the early re-award and timely implementation of the BESS project, while the project remains part of its broader effort to expand battery storage alongside its conventional power generation assets. (ANI)