KEC International, the RPG group company, on Wednesday said a decision by Power Grid Corp of India to bar the company from future tenders for nine months will have “no bearing” on the execution of its existing contracts with the state-run transmission utility. The clarification followed a communication from Power Grid citing “alleged transgression of contractual provisions” tied to an earlier matter. The restriction is effective from November 18, 2025.
Shares of KEC dropped more than 10% in intraday trade on Wednesday, sliding to ₹697.70 before paring losses to close at ₹710.20, down 9.08% from the previous session. The move comes months after the CBI arrested a senior Power Grid official in March for allegedly taking a bribe from a KEC employee.
What did KEC say?
KEC said ongoing projects remain unaffected and that it is evaluating options, including legal remedies and a request for reconsideration by Power Grid.
In a separate filing, KEC reported year-to-date order intake of ₹17,066 crore for FY26, up 17% from a year earlier. Power Grid accounted for about 4% of this year’s orders, compared with 27% last year. KEC’s unexecuted order book stands at ₹39,325 crore, with Power Grid contributing about 15%.
What did KEC say about potential impact on existing projects?
The company said the Power Grid communication has “no bearing” on execution of existing projects. With a tender pipeline of over ₹1.8 trillion and L1 positions exceeding ₹4,000 crore, KEC reiterated its confidence in meeting its annual order-intake target.
“The company does not envisage any significant impact on its operations and financial position, considering the strong order book and tender pipeline,” it said, adding that “KEC International upholds the highest standards of corporate governance, ethics, and compliance in all its operations and conducts its business with integrity, transparency, and adherence to applicable laws and regulations.”