Reliance Infrastructure grabs arbitration award worth Rs 16.14 crore
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Reliance Infrastructure (RInfra) said Tuesday it has won Rs 16.14 crore arbitration award against the National Highway Authority of India (NHAI).
"A three-member arbitration tribunal in its unanimous award on November 12, 2018, has asked NHAI to pay Rs 16.14 crore by February 10, 2019, to Reliance Infrastructure. NHAI will have to pay interest @12 per cent pa on the amount if they do not pay Rs 16.14 crore by the deadline," RInfra said in a statement.
This win is in addition to the Rs 200 crore arbitration award that the three-member arbitration tribunal in its unanimous decision had ordered NHAI to pay to Reliance Infrastructure for the same project in August this year for cost over-run and loss of revenue, the company said.
It said the need for current arbitration arose due to cost over-run in consultant fees during construction, delayed payment of grant and additional expenses due to Change in Law on TD Toll Road Private Limited (TD Toll Road), a wholly owned subsidiary of Reliance Infrastructure, which NHAI did not reimburse as per the terms of the Concession Agreement.
"With this win, Reliance Infrastructure has won a total of six Arbitration Awards amounting to Rs 6,300 crore in cases of DMRC, Goa Power Plant and NHAI Roads. In addition, Reliance Infrastructure has over Rs 8,000 crore of claims under advanced stages of arbitration for EPC projects, Mumbai Metro and Roads," the company said.
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. The project construction works have been completed and the commercial operation for the project commenced in January 2012.
(With inputs from agencies.)