Wed Jul 23 18:01:10 UTC 2025: Here’s a summary of the provided text and a rewritten version as a news article:
**Summary:**
Tamil Nadu Power Generation Corporation Ltd (TNGCPL) has terminated a ₹2,600.02 crore contract with BGR Energy Systems Ltd. for the Balance of Plant (BOP) package of the North Chennai Super Critical Thermal Power Project, Stage III (1×800 mW). TNGCPL cited BGR’s failure to meet key project obligations, including incomplete systems, unmet insurance renewal requirements, and guarantee extensions. BGR is challenging the termination via arbitration, claiming it will not significantly impact their finances. This is the second time TNGCPL has terminated a contract with BGR, the first being for the Ennore Thermal Power Station expansion project. The North Chennai project, costing ₹10,158 crore, has already been commissioned and is undergoing trial runs, aiming for commercial operation soon and the policy note said.
**News Article:**
**TNGCPL Terminates ₹2,600 Crore Power Project Contract with BGR Energy**
**CHENNAI, July 23, 2025** – Tamil Nadu Power Generation Corporation Ltd (TNGCPL) has terminated a significant contract with BGR Energy Systems Ltd. for the Balance of Plant (BOP) package of the North Chennai Super Critical Thermal Power Project, Stage III. The ₹2,600.02 crore deal was cancelled due to BGR’s alleged failure to fulfill key project obligations.
According to a statement released by BGR Energy, the termination letter from TNGCPL cited various reasons for the cancellation, including incomplete critical systems, failure to meet contractual requirements for insurance renewals, and lack of guarantee extensions.
“TNGCPL cited various reasons for termination of contract, including the contractor being unable to fulfil key project obligations, critical systems remaining incomplete, and the contractual requirements for insurance renewals and guarantee extensions were not met,” BGR said in their statement.
BGR Energy is challenging the termination through an arbitration application pending before the Madras High Court. The company maintains that the cancellation will not have a major impact on its financials and operations.
The North Chennai Super Critical Thermal Power Project Stage-III (1×800 mW), located in Tiruvallur district, represents a total investment of ₹10,158 crore, including Interest During Construction (IDC), according to the State Energy Department’s policy note for 2025-2026. The project was commissioned in March 2024 by Chief Minister M.K. Stalin and is currently undergoing trial runs, having reached a capacity of 675 mW during testing. TNGCPL aims to achieve commercial operation as soon as possible, to reach its installed capacity of 800 mW and operates continuously for 72 hours. It is designed to operate with 50% Imported and 50% Domestic Coal.
This is not the first time TNGCPL has terminated a contract with BGR Energy. Previously, the EPC contract for the 660-MW Ennore Thermal Power Station (ETPS) expansion project was cancelled due to slow progress and poor performance.
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