The finances of Damodar Valley Corporation may not come under pressure following the power company losing an arbitration case against Reliance Infrastructure (Rel Infra) for which it will have to pay Rs 1,250 crore to the Anil Ambani-company. The corporation is contemplating a legal route and the matter may escalate to a higher court after a three-member arbitration tribunal gave its decision on Saturday.
Reliance Infrastructure was the engineering and construction contractor for DVC’s 2×600 MW Raghunathpur thermal power plant project in Purulia. The tribunal has directed DVC 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 cent for the delay in payment beyond four weeks.
