Reliance Infra wins arbitration award of Rs 1,250 crore against DVC
Reliance Infrastructure Ltd said on Monday it has won a major arbitration award of Rs 1,250 crore against government-owned Damodar Valley Corporation (DVC).
A three-member arbitration tribunal unanimously gave the award in favour of Reliance Infrastructure on December 21.
The tribunal 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 per annum for any delay in payment beyond four weeks.
Pursuant to the recent Niti Aayog circular, Reliance Infrastructure will request DVC to pay 75 per cent of the arbitral award against bank guarantee immediately. The proceeds will be used to pay lenders and reduce the company’s debt.
