Vikran Engineering Cancels ₹354 Crore EPC Contract with Ellume Energy Due to Client Delays
Vikran Engineering Ltd has announced the cancellation of a significant contract previously accepted from Ellume Energy MH Solar One Private Limited (SPV). The order, which was valued at approximately ₹ 354.21 crore, pertains to a Turnkey Engineering, Procurement, and Construction (EPC) Contract for the 100 MW AC Solar Power Project in Maharashtra.The company decided not to proceed with the project following an internal evaluation. The cancellation is attributed primarily to prolonged delays encountered by the client in achieving necessary project readiness milestones. These delays included the failure of the client to provide the required Power Purchase Agreement (PPA), work commencement approvals, design clearances, scope finalization, and mobilization permissions within the anticipated timelines. Consequently, executing the work order became commercially unviable.
The cancellation of the EPC contract is a mutual understanding between both parties. Vikran Engineering stated that this development is not expected to have any material adverse impact on the company's ongoing operations or financial performance. The company confirmed that it remains focused on opportunities that are strategically aligned, execution-ready, and accretive to long-term shareholder value.
Details of the contract and its cancellation are summarized below:
| Particulars | Details |
|---|---|
| Parties Involved | Ellume Energy MHSolar One Private Limited (SPV) |
| Nature of Contract | Turnkey Engineering, Procurement, and Construction (EPC) Contract for the 100 MW AC Solar Power Project in Maharashtra |
| LOA Acceptance Date | October 24, 2025 |
| Reason for Cancellation | Delays by client in providing PPA, work commencement approvals, design clearances, scope finalization, and mobilization permissions. The project commencement remained uncertain, making execution commercially unviable. |
Vikran Engineering has stated that this cancellation is expected to have no material adverse impact on the company's financial position or growth outlook.
VIKRAN Stock Price Movement
Shares of Vikran Engineering Limited shed 1.15% on Thursday, settling at ₹70.24 after trading finished. The stock traded a total volume of 1.34 million shares in the session, moving within a day range defined by ₹70.00 and ₹72.55.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
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