Tamil Nadu Generation and Distribution Corporation (TANGEDCO) has cancelled EPC contract for 660 MW plant awarded to BGR Energy Systems. TANGEDCO has cancelled the contract of Rs 4,442.75 crore for setting up of a 660 MW power plant and forfeited Rs 5 crore deposit.
It has received a letter dated April 23, 2021, from TANGEDCO that the letter of intent (LOI) regarding award of contract has been cancelled for non submission bank guarantees for security deposit and performance bank guarantee by the company and consequential forfeiture of EMD (earnest money deposit) of Rs 5 crore.
The company has moved the High Court of Madras for quashing the said cancellation of LOI and consequent direction to accept bank guarantees as per Government of India instructions issued in the wake of the pandemic caused by COVID -19.
