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Reliance Infrastructure wins major Arbitration award of Rs 1,250 crore

23 Dec 2019 Evaluate

Reliance Infrastructure (RInfra) has won a major Arbitration award of Rs 1,250 crore against Damodar Valley Corporation (DVC), a Government of India undertaking. A three-member Arbitration Tribunal unanimously gave the award in favour of the company on December 21, 2019.

The company was the Engineering & Construction contractor for Damodar Valley Corporation's 2 x 600 MW Raghunathpur thermal power project in West Bengal commissioned in 2012. The Arbitration Tribunal awarded the case in favor of the company and directed Damodar Valley Corporation to pay Rs 896 crore and return the bank guarantees of Rs 354 crore within four weeks or pay additional interest, at the rate of 15% per annum, for any delay in payment beyond four weeks. The company will request DVC to pay 75% of the Arbitral award against bank guarantee immediately.

RInfra is one of the largest infrastructure companies, developing projects through various Special Purpose Vehicles (SPVs) in several high growth sectors such as Power, Roads and Metro Rail in the Infrastructure space and the Defence sector.



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