Reliance Infrastructure wins Rs. 200 crore Arbitration Award against NHAI
Reliance Infrastructure in a press release has announced that it has won Rs. 200 crore arbitration award against National Highway Authority of India (NHAI). The press release further stated that a three-member Arbitration Tribunal has asked NHAI to pay Rs. 150 crore by November 29, 2018 to Reliance Infrastructure. If it doesn’t by November 29, 2018, then NHAI will have to pay interest @12% p.a. on the amount.
TD Toll Road, a wholly owned subsidiary of Reliance Infrastructure, has incurred losses due to prolonged delay in providing land by the NHAI which has resulted 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 was upheld by the Tribunal stated the press release.
The Tribunal has also awarded a compensation @13.5% of actual revenue for the loss of revenue suffered due to change in location of toll plaza to Reliance Infrastructure. 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.
@EPC World Media