NTPC Terminates ₹413.37 Crore Mouda BESS Contract With GR Infraprojects

NTPC awarded the ₹413.37 crore Mouda BESS contract in March 2026, later terminated over delays.

State owned Maharatna NTPC Limited has terminated its ₹413.37 crore EPC contract with G R Infraprojects Limited (GRIL) for developing a 400 MWh Battery Energy Storage System (BESS) at the Mouda Super Thermal Power Station in Maharashtra.

The contract was awarded in March 2026 with an original execution period of 15 months. NTPC said the project faced delays in critical activities and that the contractor failed to achieve the required progress despite being issued a contractual notice seeking corrective action.

Following the failure to undertake the required remedial measures, NTPC terminated the contract with immediate effect. The company also encashed securities worth approximately ₹91 crore in accordance with the contractual provisions.

The original contract covered engineering, procurement and construction of the BESS, domestic ex-works supply and comprehensive annual maintenance over the system’s design life. The contract value was ₹413.37 crore, excluding GST.

GR Infraprojects Cites Force Majeure

GR Infraprojects has presented a different account of the circumstances. In a September 16 regulatory disclosure, the company said it had issued a termination notice to NTPC citing continuing force majeure and war-risk circumstances, along with contractual issues.

GRIL also invoked the applicable dispute-resolution mechanism and said it was assessing the financial implications arising from the matter.

Thus, the two parties have disclosed different positions regarding the termination. NTPC has cited project delays and failure to meet contractual requirements, while GRIL has referred to force majeure, war-risk circumstances and contractual issues.

NTPC Moves to Re-Tender 400 MWh BESS

The termination does not mean that NTPC has abandoned the Mouda storage project. The company has initiated the process to re-tender the 400 MWh BESS project at the risk and cost of GRIL under the applicable contractual provisions.

The project is significant as India scales up utility-scale battery storage to provide greater flexibility to the power system. BESS installations can support peak demand management, grid balancing and integration of variable renewable energy from solar and wind projects.

For NTPC, the Mouda project highlights the growing role of energy storage within its broader transition and power-system strategy. The upcoming re-tender and re-award will also be closely watched by the industry for EPC pricing, execution timelines and contractor participation in India’s expanding BESS market.