BGR Energy Systems Ltd Receives Termination Letter from TANTRANSCO for EPC Contract

BGR Energy Systems Ltd has received a termination letter from Tamil Nadu Transmission Corporation Limited (TANTRANSCO) for an EPC contract involving the design, manufacturing, supply, erection, testing, and commissioning of 230/110 KV AIS Substation at Tirupattur, 230 KV Bay extension at Palavadi 400 KV Substation, and associated 230 KV transmission line works. The termination was due to alleged delays and non-completion of the project within the stipulated timelines. TANTRANSCO has indicated recovery of liquidated damages, cost of materials not consumed, and recovery of differential cost for execution of balance works through alternative agencies. BGR Energy is examining the termination order and its legal options, and will take appropriate steps to protect its interests. The company states that there is no material impact on its operations or other activities.