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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