NTPC may cancel two contracts of 500 MW awarded to Gensol Engineering

New Delhi: NTPC Ltd's renewable energy arm is considering terminating two contracts close to 500 MW awarded to troubled Gensol Engineering Ltd for engineering, procurement, and construction (EPC) work. It may also cancel a third project that was in the process of being awarded to the solar EPC company, people aware of the development said.

"An insignificant amount has been paid as an advance in one of the projects. And we are taking action to terminate those contracts because there have been delays by the party. The steps are being figured out," one of the persons said.

The third project will not be awarded to Gensol and NTPC could look for alternatives and may go for a second round of bidding for it.

"No significant progress has been made in the projects so far," the person said.

Gensol Engineering specializes in solar power EPC services, along with electric mobility solutions. Its unit, Gensol Solar EPC, has so far executed over 770 MW of solar projects, including rooftop, ground mount, and floating solar installations, according to its website.

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Currently, the company is facing probes to identify discrepancies in the loan disbursed to Gensol for purchase of electric vehicles (EV) that were leased to its sister concern BluSmart.

In the solar EPC segment, the company has a ?7,000-crore unexecuted order book according to the latest statement with major clients such as NTPC and GUVNL.

In February, Gensol had secured EPC contracts worth approximately ?968 crores for a 245 MW project and ?1,063 crore for a 275 MW project at Khavda renewable energy power park in Gujarat, including three years of operation and maintenance.

Apart from its current order book, there is a bid pipeline "several times larger," according to the company's statement in February.

NTPC and Gensol Engineering did not respond to emails ET sent seeking comments till the time of printing.