NTPC May Scrap Two Major Power Contracts Awarded to Gensol Engineering

According to a report, NTPC Ltd’s renewable energy subsidiary is considering terminating two engineering, procurement, and construction (EPC) contracts totalling nearly 500 MW that were awarded to the financially troubled Gensol Engineering Ltd. Also, the company may cancel a third project that was in the process of being awarded to the solar EPC company.

The report said that an insignificant amount has been paid as an advance in one of the projects. And we are taking action to terminate those contracts, as there has been a delay by the party. Appropriate steps to be taken are being considered. The third project will not be awarded to Gensol, and NTPC is likely to explore alternative options and may potentially go for a second round of bidding. The report noted that these projects have seen little to no meaningful progress to date.

Gensol Engineering specialises in solar power EPC (Engineering, Procurement, and Construction) services and electric mobility solutions. Its solar division, Gensol Solar EPC, has successfully executed over 770 MW of solar projects to date, including rooftop, ground-mounted, and floating solar installations, as stated on its website. The company is currently under investigation for potential discrepancies in loans disbursed to Gensol for the purchase of electric vehicles (EVs), which were subsequently leased to its sister company, BluSmart.