Reliance Infrastructure wins Rs 1,250 crore Arbitration award against DVC

On Monday, Reliance Infrastructure said it has won an arbitration award of Rs 1,250 crore against Damodar Valley Corporation (DVC).

The proceeds will be used to pay lenders & reduce the debt of the company, the infrastructure firm said in a filing to BSE.

According to the filing, a 3-member arbitration tribunal unanimously gave the award in favour of Reliance Infrastructure on Saturday.

Reliance Infrastructure was the engineering & construction contractor for DVC's 1200 mw Raghunathpur thermal power project in West Bengal commissioned in 2012.

The Firm said Reliance Infrastructure has won a major arbitration award of Rs 1,250 crore against DVC, a Govt. of India undertaking.

The arbitration tribunal awarded the case in favour of Reliance Infrastructure & directed DVC to pay Rs 896 crore & 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 4 weeks.

The Company said that "Pursuant to the recent Niti Aayog circular, Reliance Infrastructure will request DVC to pay 75% of the arbitral award against bank guarantee immediately".

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