Bondada Engineering Secures Major ₹836 Crore Energy Storage Project in Tamil Nadu, Shares Hit Upper Circuit
By Ankur Chandra | Updated at: Sep 29, 2025 09:01 PM IST
Hyderabad, June 24, 2025: Bondada Engineering Limited (BSE: 543971) has announced a significant achievement, having received a Letter of Award (LOA) from Tamil Nadu Green Energy Corporation Limited (TNGECL). This landmark contract is for the development of a 400 MWh battery energy storage system (BESS) project, making it the largest energy storage order secured by the company to date.
Following the news, the shares of the company were locked in the upper circuit and were trading at ₹466.30, up 5% or ₹22.20 at around 1:30 PM on June 24.
What are Battery Energy Storage Systems (BESS)?
Battery Energy Storage Systems (BESS) are becoming increasingly important in India’s energy landscape. They address the issue of renewable energy sources, such as solar and wind, by storing surplus electricity and discharging it when needed, thereby ensuring a consistent power supply and enhancing grid stability. BESS also helps in managing peak power demand, reducing dependence on fossil fuels, and optimising the use of open access and captive solar solutions for industries and businesses. The Ministry of Power (MoP) has mandated the inclusion of BESS in upcoming solar projects to enhance grid reliability further.
Boosting India’s Green Energy Push
This substantial ₹836 crore (including GST) order will be executed over a 12-year period under a Build-Own-Operate (BOO) model. The project involves integrating two-hour, 200 MW x 2 cycle charging/discharging BESS infrastructure at two key locations in Tamil Nadu: the Vellalaviduthi and Thennampatty substations. The primary goals of this project are to enhance grid stability, facilitate the integration of renewable energy sources, and support peak demand management within the state. The execution timeline for this project is 18 months from the signing of the BESS Agreement.
| Project Details | Information |
|---|---|
| Awarding Authority | Tamil Nadu Green Energy Corporation Limited (TNGECL) |
| Capacity | 400 MWh (200 MW x 2 hours) |
| Model | Build-Own-Operate (BOO) |
| Bidding Process | Tariff-based Competitive Bidding under VGF support |
| Locations | Vellalaviduthi SS & Thennampatty 400/230-110 KV SS |
| Project Value | ₹836 crore (incl. GST) |
| Execution Timeline | 18 months from BESS Agreement execution |
| Tenure of Revenue Realisation | 12 years |
| Domestic/International | Domestic |
| Related Party Involvement | None |
Aligning with National and State Green Energy Targets
This initiative plays a crucial role in Tamil Nadu’s broader energy strategy and aligns with India’s National Framework for Energy Storage Systems (NFESS), 2023. It specifically supports Tamil Nadu’s ambitious target to achieve 50% renewable energy by 2030. Furthermore, this project makes a significant contribution to India’s nationwide goal of establishing 500 GW of non-fossil fuel capacity by the same year.
Commenting on the achievement, Bondada Engineering stated:
“This project marks a key milestone for Bondada Group in the energy storage segment and reflects our strong commitment to advancing India’s clean energy ecosystem.”
What’s Next for Bondada Engineering?
Bondada Engineering’s ₹836 crore BESS order positions it as a serious player in India’s energy storage market, opening doors to more government-led renewable infrastructure tenders. The successful execution of this 400 MWh project could lead to stronger credentials, higher revenue visibility over the 12-year BOO period, and improved investor confidence. With India targeting 50% renewable energy by 2030, Bondada is likely to benefit from rising demand for grid-supportive technologies, including battery storage and hybrid power systems. Further order wins and execution updates will be key triggers for the stock’s momentum.
Company Profile: Bondada Engineering
Bondada Engineering Limited is a Hyderabad-based infrastructure solutions provider, primarily engaged in telecom, power, and green energy infrastructure development. The company is listed on the Bombay Stock Exchange and is expanding aggressively into battery energy storage and clean energy infrastructure segments.
REF:https://www.bseindia.com/xml-data/corpfiling/AttachLive/951b1bdf-814e-4672-bb4e-0d17886eb63f.pdf
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