K2 Infragen Withdraws from 67.61 MWp Solar EPCC Project in Gujarat
K N Mishra
04/Apr/2025

What’s covered under the Article:
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K2 Infragen cancels Khavda, Gujarat solar EPCC project awarded on March 20, 2025, due to scope changes and pricing disagreements.
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The company received changes to the scope of work on March 28 and failed to reach agreeable revised terms by April 3, 2025.
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K2 Infragen cites long-term strategic goals and shareholder interest behind decision to halt project execution.
On April 4, 2025, K2 Infragen Ltd, a listed infrastructure company, formally announced the revocation of a recently awarded 67.61 MWp solar Engineering, Procurement, Construction and Commissioning (EPCC) project in Khavda, Gujarat. The project, originally confirmed via purchase order on March 20, 2025, was to be a significant undertaking in the renewable energy sector. However, as per the company’s official communication to the National Stock Exchange of India, the project will no longer proceed due to changes in the scope of work (SOW) and failed commercial negotiations.
According to K2 Infragen, the initial purchase order for the solar EPCC project was followed by a revised scope of work received on March 28, 2025. In response, the company submitted a revised offer on April 3, 2025, reflecting the adjusted pricing aligned with the updated SOW. However, these new commercial terms were not accepted by the client, leading K2 Infragen to take the strategic decision of withdrawing from the contract.
The company emphasized that it is a professionally managed organization and chose to avoid further delays or unproductive discussions. Instead, it opted to share a final "no-regret" commercial offer, which essentially represented its best and final pricing, thereby ensuring no time was wasted for either party.
K2 Infragen further reiterated that this decision aligns with the company's vision of sustainable long-term growth. The firm stated that it remains committed to protecting shareholder interests and engaging only in projects that align with financial prudence, strategic relevance, and execution feasibility.
The revocation of this order, although a setback in the short-term, is framed by the company as a strategic realignment in response to dynamic project variables and evolving client demands. K2 Infragen underscored its risk-aware approach, ensuring that projects undertaken fit within their broader business strategy and maintain the desired return on investment.
This project had earlier gained attention following a press release issued on March 25, 2025, announcing its award. Located in Khavda, a site rapidly emerging as a hub for large-scale solar energy projects in India, the 67.61 MWp capacity was expected to contribute meaningfully to the region’s renewable power generation potential.
However, the dynamic nature of infrastructure contracts, particularly those involving renewable technologies, often leads to mid-stream revisions and complex pricing discussions. In this case, the inability to reconcile updated terms has led to a rare but decisive project cancellation.
Despite this development, K2 Infragen Ltd. maintains a healthy project pipeline across solar, transmission, and EPC infrastructure segments. The company remains optimistic about future growth opportunities and plans to continue bidding for projects that align with its core business values and financial thresholds.
The announcement also reflects the increasingly sophisticated and disciplined project management approach adopted by Indian EPC firms, where not all contracts are pursued at the cost of profitability or operational feasibility. Instead, firms like K2 Infragen are showcasing maturity in contract governance by carefully analyzing project viability before full-scale execution.
About K2 Infragen Ltd.
K2 Infragen Ltd., a NSE-listed infrastructure development company, has been involved in turnkey EPC contracts, solar and renewable energy development, and infrastructure implementation across India. With its registered office in Gurugram, Haryana, and operations across various Indian states, the company is committed to leveraging its technical capabilities and experience to build sustainable infrastructure. It holds a strong reputation for corporate governance, compliance, and timely execution of complex infrastructure projects.
The CIN of the company is L74110HR2015PLC076796 and it is traded under the NSE symbol: K2INFRA with ISIN INE0DEZ01013.
As India accelerates its energy transition, companies like K2 Infragen play a crucial role. This recent update showcases not just the opportunities in the sector, but also the challenges and business discipline required to ensure long-term sustainable success.
K2 Infragen's decision, while cautious, is likely to reinforce its image as a company that places a premium on value creation, strategic clarity, and financial responsibility. Investors and stakeholders are expected to view the move as a demonstration of the company's commitment to quality over quantity, a trait that continues to shape India’s evolving infrastructure landscape.
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