Reliance Infrastructure Wins Rs. 200 Crore Arbitration Award Against NHAI
Deepthi | Myequity news | Date : 03-09-2018 17:00:00 IST
Reliance Infrastructure has won Rs. 200 crore arbitration award against National Highway Authority of India (NHAI). A three-member Arbitration Tribunal in its unanimous award on August 31, 2018 has asked NHAI to pay Rs. 150 crore by November 29, 2018 to Reliance Infrastructure. NHAI will have to pay interest @12% p.a. on the amount if they do not pay Rs. 150 crore by the deadline.
The Tribunal has also awarded Reliance Infrastructure compensation @13.5% of actual revenue for the loss of revenue suffered due to change in location of toll plaza. 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.
The need for arbitration arose due to prolonged delay in providing land by the NHAI to TD Toll Road Private Limited (TD Toll Road), a wholly owned subsidiary of Reliance Infrastructure, resulting in cost over-run during construction and change in location of toll plaza from km 360+450 to km 382+850 on NH 45. 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. The project construction works have been completed and the commercial operation for the project commenced in January 2012.
The proceedings of the Tribunal were held for about two years starting August 2016, and all pleadings and arguments by both the parties were completed in 42 sittings. The Arbitration Tribunal consisted of illustrious personalities like former Director General, Ministry of Road Transport and Highways, ADG CPWD and Engineer in Charge of CPWD.About Reliance Infrastructure Limited EPC:
Reliance Infrastructure Limited EPC is part of Reliance Infrastructure Limited, which has a consolidated income of Rs 25,398 crore in FY 17-18, and business interests spanning diverse infrastructure segments such as Roads & Highways, Railways & Metros, Mega Civil projects, Water & Marine, and Renewable in addition to Power projects.
Reliance Infrastructure Limited is one of the pioneering names in the business with a project portfolio of 1,000 km of roads, 140 MW of solar power and 9,000 MW of thermal power. The division offers a single point solution for execution of projects from "Concept to Commissioning" including project development, project engineering, procurement, construction and commissioning for clients. 'On-time' project delivery and cost efficiency coupled with an uncompromising commitment to quality form the cornerstones of the business.
With over decades of experience in project execution and delivery, the EPC division of Reliance Infrastructure Limited has been successfully partnering with the nation to offer innovative, quality and on-time execution of complex mega infrastructure projects across diverse sectors and geographies.