Rs 205 Crore Work Order Terminated: Small-Cap Infra Company Faces Setback as Tamil Nadu Authority Restructures Global Sports City Project

On Thursday, Indian equity benchmark NIFTY traded lower, declining 116.90 points or 0.48 per cent to 24,090.85. Meanwhile, RPP Infra Projects was trading at Rs 57.53, up 0.35 points or 0.61 per cent.

Rs 205.89 Crore Global Sports City Work Order Terminated

RPP Infra Projects Limited has informed the stock exchanges about the termination of a work order received from the Sports Development Authority of Tamil Nadu (SDAT) for the establishment of Global Sports City in Chennai. The company had earlier disclosed the receipt of the work order on February 20, 2026.

The work order was valued at Rs 205.89 crore, including GST at 18 per cent. It covered the appointment of RPP Infra Projects as the contractor for the design, engineering, procurement and Construction of the Global Sports City project under the EPC mode. fileciteturn45file0L75-L87

According to the company, SDAT decided to terminate the work order following a decision to restructure and redesign the Global Sports City project. The revised plan is intended to develop a larger and more comprehensive sports city capable of hosting future national and international sporting events, including events on the scale of the Asian Games.

RPP Infra Projects Already Commenced Project Activities

RPP Infra Projects stated that it had commenced activities pursuant to the work order and had incurred substantial expenditure towards the project before the termination. The company also said that it had been engaging with SDAT and making efforts to pursue continuation of the project. However, the work order was subsequently terminated.

The termination communication was received by the company on August 12, 2026. RPP Infra Projects is now evaluating the financial and other implications arising from the termination, including its rights and remedies under the terms of the work order and contract.
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Government Decision Behind Project Restructuring

The termination follows a meeting held on June 16, 2026, under the chairmanship of the Minister for Public Works and Sports Development. During the meeting, it was decided to comprehensively restructure and redesign the Global Sports City project after considering the total extent of land available.

The objective is to develop a bigger, comprehensive and all-encompassing sports city capable of hosting major national and international sporting events, including events of the scale of the Asian Games. The outcome of the meeting was communicated to RPP Infra Projects on June 18, 2026.

Work Order Terminated With Immediate Effect

The SDAT order states that the work order has been terminated with immediate effect under the relevant provisions of the contract, including clauses relating to cancellation or reduction of works, cancellation or determination of the contract and force majeure.

RPP Infra Projects was directed to stop all construction activities forthwith. The SDAT order also stated that the termination was issued without prejudice to other rights, remedies, claims or actions available to the authority under the agreement, tender conditions and applicable law.

Company Evaluating Financial Implications

The termination creates uncertainty around the financial impact on RPP Infra Projects, particularly as the company had already commenced activities and incurred substantial expenditure on the project. The company has said that it is evaluating the financial and other implications arising from the termination.

RPP Infra Projects also acknowledged an inadvertent delay in making the required disclosure to the stock exchanges, stating that the delay occurred as the company had been pursuing continuation of the project and had already incurred expenditure. The company subsequently made the disclosure under Regulation 30 of the SEBI (LODR) Regulations, 2015.

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Disclaimer: The article is for informational purposes only and not investment advice.