Reliance Infrastructure gets Rs 94 crore from Goa govt against arbitration award of Rs 350 crore

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Reliance Infrastructure Ltd said on Friday it has received Rs 94 crore from the arbitration award of Rs 350 crore won against the state government of Goa.

The matter went into arbitration when Goa state utility delayed payments to Reliance Infrastructure for power supplied from its 48 megawatt power plant in Sancoale.

On February 16 last year, the arbitration tribunal had ordered the state government to pay Rs 350 crore including interest in favour of Reliance Infrastructure.

If the state government fails to comply with the award, said the tribunal, interest at the rate of 15 per cent per annum will be payable in favour of Reliance Infrastructure.The state government deposited Rs 50 crore in the court last month and Rs 44 crore on December 20. After the recent Niti Aayog circular, Reliance Infrastructure will request the state government to pay balance of 75 per cent of the arbitral award against bank guarantee immediately.

“The proceeds will be used to pay lenders and reduce the debt of company. Reliance Infrastructure aims to be debt-free in 2020,” it said in a statement.

Reliance Infrastructure is one of the largest infrastructure companies, developing projects through various special purpose vehicles in several high growth sectors like power, roads and Metro rail in the infrastructure space and the defence sector.

 

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TheDispatch Staff