By John Lee.
India's BGR Energy Systems has said it has decided to cancel a carryover contract value of $246 million relating to its contract to build a power plant in Nasiriya.
Iraq's Ministry of Electricity provided a letter of credit for 50 percent of the contract value in favour of the company and the latter issued a performance bond.
The company said, since terrorists have taken over various parts of Iraq and continued terror attacks across the country, the company could not proceed with execution of the contract.
BGR Energy Systems Limited is listed at the Bombay Stock Exchange and National Stock Exchange. The Company was originally incorporated in 1985, as a joint venture between GEA Energietechnik GmbH, Germany and B. G. Raghupathy (pictured).
(Source: Business Standard)