RInfra Wins Rs 200 crore Arbitration Against National Highway Authority of India (NHAI)
MUMBAI: 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, the company said that a three-member Arbitration Tribunal, on August 31 in a unanimous award asked the NHAI to pay RIfra Rs 150 crore by November 29. “NHAI will have to pay interest at 12 percent 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 percent 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.”
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 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.” (IANS)