CG Power’s foreign subsidiaries face financial crunch, legal issues

Foreign subsidiaries of CG Power Industrial Solutions are facing a severe paucity of funds in addition to legal issues.

CG Electric Systems Hungary Zrt. (‘ESHU’) has received a notice of a proceeding filed for alleged non-performance of a GIS substation contract entered into in 2012. This notice was sent through one of its associates in Kuwait, Al Kharafi National company, which has claimed₹224 crore worth damages, sources CG Power said in a filing.

It is examining the extent of damage due to this non performance and said that it will contest the claim.