The Tamil Nadu Electricity Board (TNEB) has terminated a minor contract awarded to BGR Energy for the establishment of a substation, citing significant delays in project execution.
This move by the TNEB follows a checkered history with BGR Energy, as the Tamil Nadu Generation and Distribution Corporation Limited (TANGEDCO) had previously scrapped a contract with the company in April 2021, citing its consistent failure to meet performance expectations. Financial indicators also paint a grim picture for BGR Energy, revealing a bank balance of a mere ₹33 crore last year and a staggering net loss of ₹355 crores.
Despite this setback, it’s worth noting that TANGEDCO recently allocated a significant project to BGR Energy Systems Ltd. The 660 MW super-critical Ennore Thermal Power Station expansion project, valued at ₹4,442 crores, raises eyebrows in light of the recent contract cancellation.
Tamil Nadu Bharatiya Janata Party Chief K Annamalai took to his official X handle to write about it. He wrote, “The contract for the establishment of a substation awarded to BGR Energy by the Tamil Nadu Electricity Board has been revoked due to delays in project execution. There are indications that the Tamil Nadu Electricity Board is considering taking action against individuals supporting such contractors, potentially leading to financial losses for the government. In response to this situation, Chief Minister MK Stalin of Tamil Nadu has received commendation for reinstating the Rs. 4,442 crore Ennore Thermal Power Station (ETPS) project in favor of BGR Energy. It is suggested that the Tamil Nadu Electricity Board should also consider taking action against MK Stalin in this matter. In June 2023, the Tamil Nadu Electricity Board penned a letter expressing disapproval for the delay in initiating the contract that had been reassigned to BGR Energy in 2022. The question on ability of a company facing financial constraints and unable to execute a modest substation project, but how they can effectively manage a larger-scale power plant. MK Stalin is unlikely to comprehend the gravity of this inquiry.”
தமிழ்நாடு மின்சார வாரியம், ஒரு துணை மின்நிலையத்தை அமைப்பதற்காக BGR Energy நிறுவனத்துக்கு வழங்கப்பட்ட ஒரு சிறிய ஒப்பந்தத்தை, பணியை நிறைவேற்றுவதில் ஏற்பட்ட காலதாமதம் காரணமாக ரத்து செய்துள்ளது. இதுபோன்ற ஒப்பந்ததாரர்களுக்கு ஆதரவாக செயல்பட்டு, அரசுக் கருவூலத்துக்கு இழப்பை… pic.twitter.com/SdpnfN0Cvs
— K.Annamalai (@annamalai_k) January 31, 2024
It is noteworthy that in 2022, Annamalai had raised this allegation that TANGEDCO offered a ₹4,442 crore deal to BGR Energy Systems Ltd. for a power project, violating procedures especially when the company was going through financial issues. He also accused the DMK government of favoritism, while Electricity Minister V. Senthil Balaji denied wrongdoing, citing due diligence.
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