RPP Infra Projects Ltd. has lost a contract worth approximately ₹206 crore for work on the Global Sports City project in Chennai after the Tamil Nadu government decided to scrap the existing arrangement and redesign the development to accommodate larger sporting events.

The state government's decision to redraw the project effectively cancels RPP Infra's contract. The company said it is currently assessing the financial impact of the termination. For a mid-sized contractor like RPP Infra, a single order of this size represents a meaningful share of its order book, which is concentrated in southern India, so the loss is notable for the company's near-term execution pipeline.

The Global Sports City is a planned integrated sports infrastructure development in Chennai, the capital of Tamil Nadu. The state government's move to redesign the project reflects an ambition to host larger sporting events, which prompted a re-evaluation of the original construction plans and associated contracts. Such redesigns typically mean prior contracts are retendered or re-scoped under the new plan, though the state has not detailed how or when the revised project will be awarded.

RPP Infra Projects is an Indian infrastructure company engaged in civil construction, including roads, buildings, and irrigation works, with a project portfolio primarily concentrated in Tamil Nadu and other southern states.

The development comes as Tamil Nadu continues to invest in large-scale urban and sports infrastructure in and around Chennai. Whether RPP Infra reapplies for or wins work under the redrawn Global Sports City plan remains to be seen.

The original report is available at CNBC-TV18.