Power Mech Order Book Hit: ₹1,563 Cr BESS Contract Cancelled by WBSEDCL

What Happened

Power Mech Projects Limited has announced that WBSEDCL has annulled the tender process for a 250 MW / 1000 MWh Battery Energy Storage System (BESS) project at Goolberia, West Bengal.

As a result, the previously awarded Letter of Award (LoA) to its subsidiary PM Green Private Limited has been cancelled.

Reason for cancellation

• Cancellation due to administrative and procedural exigencies
• Explicit clarification:
  • No fault or non-compliance on Power Mech’s part

This is important — removes concerns about execution credibility

Financial Impact

• Order book reduction: ₹1,563 crores
• Bid Security & Performance Bank Guarantee:
  • Fully released
  • No financial penalties

Financial downside limited to lost opportunity, not cash loss

Strategic context

• Project was part of grid-scale energy storage infrastructure
• BESS is a key enabler of renewable energy integration

Cancellation reflects:

• Policy / administrative uncertainties
• Early-stage nature of large-scale BESS adoption in India