RPP Infra Projects Limited has disclosed the termination of a significant work order from the Sports Development Authority of Tamil Nadu (SDAT) for the Establishment of Global Sports City, Chennai.

Nature of the Event

The company received a termination notice from SDAT for its work order valued at ₹205,89,14,000 (Rupees Two Hundred and Five Crores Eighty-Nine Lakhs and Fourteen Thousand only), including GST @ 18%. The work order was originally received on 20th February 2026 and involved design, engineering, procurement and construction of Global Sports City with an execution period of 18 months from the date of handing over of the site.

Termination Details

The termination communication was received by the company on 12th August 2026. The termination resulted from a policy decision by the new State Government to restructure and redesign the Global Sports City project to develop a larger, comprehensive sports facility capable of hosting future National and International level sporting events, including events of the scale of the Asian Games. This decision was made in a meeting held on 16th June 2026 under the Chairmanship of the Hon'ble Minister for Public Works and Sports Development.

Contractual Basis for Termination

SDAT invoked specific contractual clauses for termination:

  • Clause 55: "No Compensation for Cancellation / Reduction of Works"
  • Clause 68.4: "Cancellation/Determination of Contract in Full or Part"
  • Clause 71.0: "Force Majeure"
  • Other relevant clauses of the contract document

The termination is effective immediately from the date of receipt by the contractor.

Company's Position and Impact

The company had commenced activities pursuant to the work order and has incurred substantial expenditure towards the project. RPP Infra had been engaging with SDAT regarding the continuation of the project and made efforts to pursue the same before the termination.

The company is currently evaluating the financial and other implications arising from the termination, including its rights and remedies under the terms of the work order/contract. The financial impact has not been quantified in this disclosure.

Disclosure Compliance

The company acknowledges an inadvertent delay in making the requisite disclosure to the Stock Exchanges, citing the circumstances including their efforts towards project continuation and expenditure already incurred. The disclosure is made pursuant to Regulation 30 of SEBI (LODR) Regulations, 2015 read with SEBI Master Circular No. SEBI/HO/CFD/PoD2/CIR/P/0155 dated November 11, 2024.