Reliance Infra Wins Rs 200-Crore Arbitration Against NHAI
Reliance Infrastructure Ltd. today said it had won a Rs 200-crore arbitration award against the National Highway Authority of India.
“A three-member Arbitration Tribunal in its unanimous award on Aug. 31, 2018, has asked NHAI to pay Rs 150 crore by Nov. 29, 2018, to Reliance Infrastructure. NHAI will have to pay interest at the rate of 12 percent per annum on the amount if they do not pay Rs 150 crore by the deadline,” the company said in a BSE filing.
The tribunal has also awarded Reliance Infrastructure a compensation at the rate of 13.5 percent of actual revenue for the loss of revenue suffered due to change in location of toll plaza, it added.
Reliance Infrastructure said this is payable from March 2017 till the end of concession on January 14, 2038. Net present value of this future cash-flow is estimated at over Rs 50 crore.
Reliance Infrastructure said the need for arbitration arose due to prolonged delay in providing land by the NHAI to TD Toll Road Pvt Ltd (TD Toll Road), a wholly-owned subsidiary of Reliance Infrastructure, resulting in cost over-run during construction and change in location of toll plaza.
The contention of TD Toll Road that the project was delayed resulting in cost over-run during construction and location of toll plaza resulting in loss of revenue was upheld by the tribunal. TD Toll Road has designed, built and are operating 87 km long 4-lane National Highway (NH45) road connecting Trichy and Dindigul in Tamil Nadu.
Shares of Reliance Infrastructure ended 0.95 per cent lower at Rs 472.50 apiece on the BSE.