Reliance Infrastructures wins Rs 1,250cr arbitration award
Reliance Infrastructure on Monday said it has won an arbitration award of Rs 1,250 crore against Damodar Valley Corporation (DVC). The proceeds will be used to pay lenders and reduce the debt of the company, the infrastructure firm said in a filing to BSE.
A three-member arbitration tribunal unanimously gave the award in favour of Reliance Infrastructure on Saturday, the filing said.
Reliance Infrastructure was the engineering and construction contractor for DVC's 1200 mw Raghunathpur thermal power project in West Bengal commissioned in 2012.
Reliance Infrastructure has won a major arbitration award of Rs 1,250 crore against DVC, a government of India undertaking, the firm said.
The arbitration tribunal awarded the case in favour of Reliance Infrastructure and directed DVC to pay Rs 896 crore and return the bank guarantees of Rs 354 crore within four weeks or pay additional interest, at the rate of 15 percent per annum, for any delay in payment beyond four weeks.
"Pursuant to the recent Niti Aayog circular, Reliance Infrastructure will request DVC to pay 75 percent of the arbitral award against bank guarantee immediately," the company said.