G R Infraprojects Terminates NTPC Mouda BESS Contract, Faces INR 90.86 Crore Guarantee Invocations

G R Infraprojects Limited has announced the termination of its engineering, procurement and construction (EPC) contract with NTPC Limited for the implementation of a Battery Energy Storage System (BESS) at the Mouda Super Thermal Power Station in Maharashtra under Lot-1.

The company had entered into three separate contract agreements with NTPC on April 23, 2026, for the project. However, on September 16, 2026, G R Infraprojects issued a termination notice to NTPC with immediate effect. The company cited continuing Force Majeure and War Risk circumstances, along with related contractual issues arising from the provisions of the agreements, as the reasons for terminating the contracts.

Along with the termination notice, G R Infraprojects invoked the applicable dispute resolution mechanisms under the contracts. The company also stated that it has reserved all its legal and contractual rights and remedies in connection with the matter.

Following the termination notice, NTPC initiated the invocation of bank guarantees and insurance performance surety bonds associated with the project. On September 17, 2026, the company received communications from NTPC regarding the invocation of a Mobilization Advance Bank Guarantee amounting to Rs. 49.53 crore. The guarantee, worth Rs. 49,52,59,040, was issued by HDFC Bank Limited.

NTPC also sought encashment of three Insurance Performance Surety Bonds issued by Bajaj General Insurance Limited on behalf of G R Infraprojects. The three bonds have a combined value of Rs. 41.34 crore, or Rs. 41,33,70,998. Individually, the bonds are valued at approximately Rs. 34.52 crore, Rs. 4.09 crore and Rs. 2.73 crore.

The total value of the bank guarantee and surety bonds involved in the invocation is approximately Rs. 90.86 crore. G R Infraprojects said it is examining the matter in detail and evaluating appropriate legal and contractual courses of action.

The company clarified that any financial impact arising from the developments would be limited to the actual amounts encashed or paid pursuant to the bank guarantee and surety bond invocations. It further stated that the matter has not had any material impact on its ongoing business operations or other organizational activities.