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.
New Delhi: BGR Energy Systems on Monday said Tamil Nadu Generation and Distribution Corporation (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.
“The company vide its letter dated December 12, 2019, has informed the exchanges that the it has been awarded a EPC (engineering procurement and construction ) contract by TANGEDCO for execution of 1×660 MW Supercritical Ennore Thermal Power Station Expansion Project under EPC for Rs 4,442.75 crore,” a BSE filing said.
BGR Energy Systems said 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, it added.
Source: PTI
