The state power producer NTPC Ltd has announced the termination of a contract awarded to G R Infraprojects Ltd (GRIL) for the implementation of a 400 megawatt-hour Battery Energy Storage System (BESS) project at the Mauda thermal power plant in Maharashtra. The total value of this contract was 413.37 crore Indian rupees.
According to NTPC's statement, the termination occurred because the contractor failed to fulfill its obligations and achieve the required progress on the project. This project is strategically important for the energy sector.
The contract was signed in March 2026 and was initially planned to be completed within 15 months in line with national energy goals. However, according to NTPC, significant delays were observed in the execution of critical works during the project implementation.
NTPC reported that it sent a notice to GRIL demanding immediate corrective measures, but GRIL did not make the necessary rectifications. Consequently, NTPC immediately terminated the contract and, according to the terms of the agreement, recovered existing security deposits amounting to approximately 91 crore rupees.
The project remains a key initiative aimed at strengthening the flexibility of the power system and supporting the integration of renewable energy sources. NTPC has already initiated the process of re-tendering this project, with all risks and costs to be borne by GRIL, as per applicable contractual provisions.
The power producer is also taking priority steps to expedite the re-award and timely implementation of the project. The Mauda BESS project is part of NTPC's broader efforts to integrate energy storage systems alongside traditional generation sources.
The company is actively developing BESS projects in various locations, as energy storage is becoming increasingly vital for balancing India's increasingly renewable energy-oriented system. Currently, NTPC has an installed capacity exceeding 91 gigawatts and aims to reach 60 GW of renewable energy capacity by 2032. Furthermore, NTPC is investing in new technologies such as nuclear energy, battery energy storage, carbon capture, and green chemical production.
