Reliance Infrastructure Wins Rs 1,250 Crore Arbitration Award Against Damodar Valley Corporation
Reliance Infrastructure Ltd. on Monday said it has won an arbitration award of Rs 1,250 crore against Damodar Valley Corporation.
The proceeds will be used to pay lenders and reduce the debt of the company, Anil Ambani Group firm said in a filing to the Bombay Stock Exchange.
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 Damodar Valley Corporation's 1200 megawatt Raghunathpur thermal power project in West Bengal commissioned in 2012.
The arbitration tribunal awarded the case in favour of Reliance Infrastructure and directed Damodar Valley Corporation to pay Rs 896 crore and return bank guarantees of Rs 354 crore within four weeks or pay additional interest at 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.
On Monday, Reliance Infrastructure’s shares rose 4.97 percent to Rs 24.30 apiece on the NSE while the benchmark Nifty 50 declined 0.05 percent to end the day at 12,266.15 points.