FCC

Assam Solar Project Halted as Waaree EPC Contract Is Cancelled

2025-07-23

Following the Assam government’s withdrawal from its proposed solar project, the Engineering, Procurement, and Construction (EPC) contract awarded to Waaree Renewable has been suspended. Waaree Group’s EPC division informed the stock exchange of this development through a regulatory filing.

The Assam solar project was suspended due to funding challenges, which rendered the initiative unviable for the state government. Waaree Renewable Transmission Limited (RTL) explained that the Government of Assam has withdrawn the project’s funding via the Asian Development Bank (ADB) loan. Consequently, the Assam Power Distribution Company Limited (APDCL) resolved that continuing the solar project was no longer feasible, leading to the termination of all related work assigned to involved parties.

The contract had been secured by Waaree RTL as part of a consortium of three firms. In an earlier intimation dated 11 March 2025, the company stated it had received cancellation of the Letter of Award for the turnkey EPC works of a 125 MWAC (181.3 MWp DC) solar power project, which included operation and maintenance responsibilities.

Such cancellations are not unusual in the EPC and renewable energy sectors. Frequently, issues regarding project feasibility or other unforeseen circumstances on the issuer’s side result in contract terminations. Recently, wind energy manufacturers have also faced order cancellations following project suspensions, while solar module producers have reported annulled agreements that disrupted production and planning cycles.