GE Power terminates contract with Navayuga Engineering Company; stock cracks 11.5%

“The company has exercised its right to terminate the aforesaid contract due to prolonged suspension of work by NECL without any virtual certainty of resumption of work in near future,” it added.

Mar 12, 2020 08:03 IST India Infoline News Service

Stock Market Down, Sensex Down
GE Power terminates the contract awarded by Navayuga Engineering Company Limited (NECL) due to prolonged suspension of work by NECL without any virtual certainty of resumption of work in the near future.

“GE Power India Limited (the ‘Company’) on January 10, 2018, under Regulation 30 of the Listing Regulations in respect of a contract worth approximately Rs8,183mn (i.e. ~US $126 mn) awarded to the Company by Navayuga Engineering Company Limited (NECL) for design, engineering, manufacturing, supply, erection, testing and commissioning of 12 nos.  of 80 MW each capacity full Kaplan Turbine Generator units along with all auxiliary and associated equipment,” the company said.

“The company has exercised its right to terminate the aforesaid contract due to prolonged suspension of work by NECL without any virtual certainty of resumption of work in near future,” it added. 

The stock is currently trading at Rs569, down by Rs74.5 or 11.58% from its previous closing of Rs643.50 on the BSE.

The scrip opened at Rs575 and has touched a high and low of Rs602.60 and Rs568.45 respectively.

Related Story