New Delhi: State-owned power generator NTPC has terminated a Rs 413.37 crore contract awarded to GR Infraprojects Ltd (GRIL) for a 400-MWh Battery Energy Storage System (BESS) project at the Mouda Super Thermal Power Station in Maharashtra.

NTPC said on Saturday, September 19, that it terminated the contract after the project failed to achieve the required progress. The company said GR Infraprojects had not met its contractual obligations and that significant delays had occurred in critical project activities.

The termination comes days after GR Infraprojects separately issued its own notice to terminate its agreements with NTPC, citing continuing force majeure and war-risk circumstances as well as contractual issues. GRIL also invoked the applicable dispute resolution mechanism and said it was assessing the financial impact.

Rs 413 crore contract awarded in March

The Mouda BESS project was awarded to GR Infraprojects in March 2026 for a total contract value of Rs 413.37 crore. The 400-MWh system was scheduled to be completed within 15 months.

NTPC described the project as strategically important and said its timely implementation was aligned with broader national energy objectives. However, the company said the project encountered significant delays in critical activities.

According to NTPC, it issued a contractual notice to GRIL requiring immediate corrective action. The power producer said the contractor did not undertake the required remedial measures, leading to termination of the contract with immediate effect.

NTPC encashes securities worth about Rs 91 crore

Following the termination, NTPC said it has encashed available securities amounting to approximately Rs 91 crore, in accordance with the contractual provisions.

The move represents a significant financial consequence of the contract termination. NTPC has also begun the process of re-tendering the project, with the fresh procurement being pursued at the risk and cost of GRIL under the applicable contractual provisions.

NTPC said it is taking measures on priority to facilitate the early re-award of the project and ensure its timely implementation.

GR Infraprojects had cited force majeure and war risk

The termination follows a separate disclosure by GR Infraprojects on September 16.

The infrastructure company said it had issued a notice of termination to NTPC in view of continuing force majeure and war-risk circumstances and contractual issues arising from provisions of the agreements. GRIL subsequently invoked the dispute resolution mechanism and reserved its rights and remedies under the agreements.

The differing notices mean that the circumstances surrounding the contract termination are disputed between the two parties. NTPC has attributed its decision to project delays and GRIL’s failure to meet contractual requirements, while GRIL has cited force majeure, war-risk circumstances and contractual issues.

GRIL’s disclosure also said the financial impact of the termination was being assessed.

BESS project aimed at strengthening grid flexibility

The Mouda project is part of the wider expansion of battery-based energy storage in India’s power sector. Battery Energy Storage Systems can store electricity and release it when required, helping power systems manage variations in demand and supply.

The Mouda BESS project is intended to strengthen grid flexibility and support the integration of renewable energy, according to industry reporting. This makes timely execution relevant to NTPC’s broader plans for deploying energy storage alongside its conventional generation assets.

As India’s electricity system incorporates more renewable generation, storage technologies are increasingly being used to help manage fluctuations associated with solar and wind power. BESS projects can also support system balancing and improve the flexibility of electricity supply.

NTPC plans fresh tender for the project

With the original contract terminated, NTPC has started the process of re-tendering the Mouda BESS project.

The company said the re-tendering would be undertaken at GRIL’s risk and cost in line with the applicable contractual provisions. NTPC has also indicated that it will prioritise the re-award of the project to minimise further delays.

The fresh tender will determine the next contractor responsible for implementing the 400-MWh storage system. The project’s eventual completion will depend on the outcome of the procurement process and subsequent execution.

The contract dispute between NTPC and GR Infraprojects could also proceed through the contractual dispute resolution mechanism invoked by GRIL. Until the matter is resolved, the two companies’ differing accounts of the circumstances leading to termination remain part of the record.