Taking strict contractual action against infrastructure major GR Infraprojects Limited, India’s Maharatna energy producing company NTPC Limited (NTPC) has canceled the contract of a large Battery Energy Storage System (BESS) project worth Rs 413.37 crore with immediate effect. This high-scale project was to be set up at NTPC’s prestigious Mouda Super Thermal Power Station complex located in Nagpur district of Maharashtra, with a total energy storage capacity of 400 megawatt-hour (MWh). The public sector power undertaking has clarified that this drastic step has been taken due to non-fulfillment of essential contract terms, mandatory timeline milestones and technical responsibilities as per the prescribed standards.
NTPC had formally awarded this contract for engineering, procurement and construction (EPC) of the grid-scale 400 MWh BESS project within the Mauda Super Thermal Power Station to GR Infraprojects in March 2026. As per the mandatory terms of the contract, the contractor company was to erect and commission the entire structure of the battery storage facility within exactly 15 months from the date of issue of the work order. However, extremely important activities such as initial civil construction at the ground level, supply of essential equipment and system designing were unnecessarily delayed from the very beginning and the work fell far behind schedule.
According to senior NTPC officials, in view of the continuous delay in the project, a formal contractual notice was issued to GR Infraprojects and clear instructions were given to increase the pace of work and take necessary corrective steps. Despite repeated warnings, the contractor company did not increase the number of resources on site nor did it present any concrete plan to address the supply chain bottlenecks. As a result, NTPC canceled the contract keeping in mind the public money and national grid security. Additionally, NTPC has also immediately encashed the bank guarantees and performance securities amounting to approximately Rs 91 crore deposited by GR Infraprojects under the contractual provisions.
NTPC management has clarified that the existing 400 MWh BESS project will not be left in limbo, rather the process of fresh re-tendering has been started on priority basis to complete its remaining works. This new tender is being issued under the ‘Risk and Cost’ clause of the original contract. This simply means that if the new contractor has to pay more than the original amount of Rs 413.37 crore to complete the project or whatever additional financial loss is incurred in the process, every penny of it will be recovered legally from GR Infraprojects Limited.
Mauda Super Thermal Power Station in Maharashtra is a vital hub for ensuring round the clock reliable power supply to the western regional power grid of the country. The primary objective of installing the 400 MWh Battery Energy Storage System (BESS) is to enhance the grid resilience of the national grid and smoothly integrate variable renewable energy sources like solar and wind with conventional thermal power. The excess solar energy produced during the day was to be stored in these huge battery packs and released into the grid during peak-demand hours in the evening. The delay in this project was directly impacting NTPC’s national goals of green energy transition and grid stabilization.
NTPC is setting up large scale battery energy storage systems in several states, taking advantage of its large existing conventional thermal power plant complexes and available grid substation connectivity. The company believes that as the share of renewable energy in India’s energy basket increases, utility-scale battery storage has become an essential requirement to regulate grid frequency and prevent sudden power outages. NTPC aims to complete the remaining work of Mauda on time by handing it over to a new transparent and capable vendor, so that the country’s energy security and 24×7 power supply system can be strengthened with modern technology.