NTPC Likely to Cancel Solar Projects Awarded to Gensol Engineering

NTPC Ltd’s renewable energy subsidiary is considering terminating two engineering, procurement, and construction (EPC) contracts awarded to Gensol Engineering Ltd, totaling nearly 500 MW. Additionally, a third project under consideration for award to Gensol may also be scrapped, as per news reports. 

An official said minimal advance had been paid in one of the ongoing projects, and action is underway to terminate the contracts due to delays by Gensol. 

Halted Project and Rebid Possibility 

The third EPC project, which was still in the planning phase, will not be awarded to Gensol. NTPC is expected to explore alternatives, possibly issuing a second round of bidding for the project. 

No major progress has been made on the existing projects so far, as per news reports. 

Gensol’s EPC Background and Troubles 

Gensol Engineering, known for its solar EPC and electric mobility solutions, has executed over 770 MW of solar projects across rooftop, ground mount, and floating solar formats, according to its website. 

However, the company is now under investigation over discrepancies in a loan issued for the purchase of electric vehicles (EVs) leased to its sister concern, BluSmart. 

Projects and Order Book Status 

Despite the ongoing issues, Gensol maintains an unexecuted solar EPC order book worth ₹7,000 crore, with NTPC and GUVNL among its major clients. 

In February, the company secured two significant EPC contracts in Gujarat’s Khavda renewable energy park — a 245 MW project worth ₹968 crore and a 275 MW project worth ₹1,063 crore, both including 3 years of operations and maintenance. 

The company has also claimed a much larger project bid pipeline in its February communication. 

Also Read: NTPC Green Energy and Honeywell UOP Collaborate on SAF Production Study! 

Conclusion 

NTPC is likely to cancel the contracts due to a lack of project progress and ongoing delays. The decision on re-awarding the third project is still pending. 

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