Contact Your Financial Adviser Money Making MC
03
September 2018
 |
Reliance Infrastructure (The Total Investment & Insurance
Solutions)
Reliance
Infrastructure (RInfra) has won a Rs 200 crore arbitration award against the
National Highway Authority of India (NHAI), the company said on Monday.
In
a statement here, the company said that a three-member Arbitration Tribunal, on
August 31 in an unanimous award asked the NHAI to pay RIfra Rs 150 crore by
November 29.
The Total Investment & Insurance Solutions
"NHAI
will have to pay interest at 12 per cent per annum on the amount if they do not
pay Rs 150 crore by the deadline," it said.
"The
Tribunal has also awarded Reliance Infrastructure compensation at 13.5 per cent
of actual revenue for the loss of revenue suffered due to change in location of
the toll plaza.
The Total Investment & Insurance Solutions
"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."
According
to the company, the need for arbitration arose due to the prolonged delay by
the NHAI in providing land to RInfra subsidiary TD Toll Road resulting in cost
overrun "during construction and change in location of toll plaza from km
360+450 to km 382+850 on NH (National HighwaY) 45."
"The
contention of TD Toll Road that the project was delayed resulting in cost
overrun during construction and location of toll plaza resulting in loss of
revenue was upheld by the Tribunal." The Total Investment & Insurance
Solutions
TD
Toll Road has designed, built and are operating the 87 km long four-lane NH 45
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 statement said said.
"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," it added.The Total Investment & Insurance Solutions
No comments:
Post a Comment