Contact Your Financial Adviser Money Making MC
13
November 2018
 |
Job (The Total Investment & Insurance Solutions)
Reliance
Infrastructure NSE 2.06 % has bagged a Rs 16.14 crore arbitrationaward against
National Highway Authority of India, a small win for the company which has Rs
8,000 crore of claims with different government agencies. With this win,
Reliance Infrastructure has won a total of six arbitration awards amounting to
around Rs 6,300 crore in cases of Delhi Metro Rail Corporation (DMRC), Goa
Power Plant and NHAI Roads. The company now has over Rs 8,000 crore of claims
under advanced stages of arbitration for engineering, procurement and
construction (EPC) projects, Mumbai Metro and road jobs, a company statement
said.
Reliance
Infrastructure said Tuesday that a three-member arbitration tribunal ordered
NHAI to pay Rs 16.14 crore by February 10, 2019 to the company. NHAI will have
to pay interest of 12% per annum on the amount if it does not pay by the
deadline. This order is in addition to a Rs 200 crore arbitration award the
company bagged earlier in August for the same NHAI project for cost over-run
and loss of revenue.
“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, a wholly
owned subsidiary of Reliance Infrastructure, which NHAI did not reimburse as
per the terms of the concession agreement,” the company said in the statement.
TD Toll Road has designed, built and is operating an 87-km-long 4-lane national
highway, NH45, connecting Trichy and Dindigul in Tamil Nadu. The project
construction work was completed and commercial operation started in January
2012.
Many
construction firms have funded large cost and time overruns on their own
balance sheets in the absence of timely compensation from client. With a
multi-year dispute resolution process, these companies are dependent on relief
from the courts after PSUs and other government authorities challenge binding
arbitration awards all the way to the Supreme Court. Industry says that these
clients mechanically appeal all the way up to the apex court, thereby making a
mockery of the dispute resolution process. The Total Investment & Insurance Solutions
No comments:
Post a Comment