RInfra wins Rs 200 cr arbitration against NHAI
Reliance Infrastructure (RInfra) has won a Rs 200 crore arbitration award against the National Highway Authority of India (NHAI), the company said on Monday.
In a statement here, the company said that a three-member Arbitration Tribunal, on August 31 in an unanimous award asked the NHAI to pay RIfra Rs 150 crore by November 29.
"NHAI will have to pay interest at 12 per cent per annum on the amount if they do not pay Rs 150 crore by the deadline," it said.
"The Tribunal has also awarded Reliance Infrastructure compensation at 13.5 per cent of actual revenue for the loss of revenue suffered due to change in location of the toll plaza.
"This is payable from March 2017 till the end of concession on January 14, 2038. Net present value of this future cash flow is estimated at over Rs 50 crore."
According to the company, the need for arbitration arose due to the prolonged delay by the NHAI in providing land to RInfra subsidiary TD Toll Road resulting in cost overrun "during construction and change in location of toll plaza from km 360+450 to km 382+850 on NH (National HighwaY) 45."
"The contention of TD Toll Road that the project was delayed resulting in cost overrun during construction and location of toll plaza resulting in loss of revenue was upheld by the Tribunal."
TD Toll Road has designed, built and are operating the 87 km long four-lane NH 45 road connecting Trichy and Dindigul in Tamil Nadu.
"The project construction works have been completed and the commercial operation for the project commenced in January 2012," the statement said said.
"The Arbitration Tribunal consisted of illustrious personalities like former Director General, Ministry of Road Transport and Highways, ADG CPWD and Engineer in Charge of CPWD," it added.- IANS