SPML Infra Secures ₹1,128 Crore NTPC Contract for 1 GWh Battery Storage Project

SPML Infra Limited announced it has secured a major contract worth ₹1,128 crore from NTPC Limited. The project involves developing a 1 GWh (250 MW/1,000 MWh) Battery Energy Storage System (BESS) at NTPC's Barauni Thermal Power Station.

This marks SPML Infra's first large-scale grid-connected BESS project, representing a strategic expansion into the energy storage sector. The contract encompasses supply, civil works, erection, and a 15-year operation and maintenance (O&M) period. The execution phase is expected to take 18 months.

Strategic Importance

This award signifies SPML Infra's strategic pivot towards the rapidly growing energy storage market in India. It positions the company to capitalize on the increasing demand for grid stability and renewable energy integration, crucial for India's energy transition goals.
The project leverages SPML Infra's established expertise in infrastructure development and its recent focus on energy solutions.

Company Background and Partnerships

SPML Infra has been actively expanding its footprint in the energy sector. It has formed an exclusive 10-year partnership with Energy Vault, a global leader in energy storage solutions, for technology transfer and local manufacturing.
The company has prior experience with Battery Energy Storage Systems, having executed projects overseas, including a 200 MWh BESS in Texas, USA, and a 400 MWh BESS in Australia.

In April 2026, SPML Infra announced securing new orders totaling ₹4,324 crore, which included this significant NTPC BESS project alongside water infrastructure orders.

Impact of the Contract

• SPML Infra strengthens its market presence in the rapidly growing battery energy storage system (BESS) segment.
• The ₹1,128 crore contract provides significant revenue visibility and demonstrates the company's capability to handle large-scale power infrastructure projects.
• This win is a key step towards SPML Infra's goal of developing a substantial BESS manufacturing capacity.
• It diversifies the company's order book beyond its traditional water and power distribution segments.

Key Risks to Monitor

• Execution Risk: Timely completion of the 18-month execution phase and efficient operation for 15 years are critical for project success and profitability.
• Past NTPC Disputes: SPML Infra has a history of legal disputes with NTPC, including a Supreme Court case regarding withheld bank guarantees following a settlement agreement. While this new contract is a positive development, past client relationships can sometimes be complex.
• Regulatory and Policy Dependence: The energy storage sector is influenced by government policies and incentives, which could evolve.

Competitive Landscape

SPML Infra's entry into large-scale BESS positions it alongside other major players in the energy infrastructure space. Sterling and Wilson Renewable Energy recently secured a 1,000 MWh BESS project in Rajasthan, reportedly India's largest to date. KEC International and Kalpataru Projects International are also active in the power transmission and clean energy sectors, frequently announcing significant order wins, though their direct involvement in large-scale BESS is less prominent in recent news.

Market Context

• India's projected energy storage capacity requirement is 82.37 GWh by FY27, with installed BESS capacity around 219 MWh as of March 2024.

Outlook and Next Steps

• Updates on the project's commencement and progress during the 18-month execution period.
• SPML Infra's ability to successfully integrate Energy Vault's technology and meet O&M commitments.
• Future order pipeline and the company's strategy for scaling its BESS manufacturing capacity.
• Financial performance and margins on this large-scale project.
• Any further developments in SPML Infra's relationship with NTPC.