Business

RInfra moves court for arbitration award won against Goa government


Mumbai, Mar 22 (IANS): Reliance Infrastructure Ltd (RInfra) on Thursday said it has filed an application in a North Goa commercial court seeking direction for the payment of the Rs 292 crore arbitration award it has won recently against the state government.

"In its application filed under section 9 of the Arbitration and Conciliation Act, 1996, Reliance Infrastructure Limited has sought the Court's direction to Goa Government to pay an amount of Rs 278.29 crore with interest totaling to Rs 292 crore, which was awarded by the Arbitration Tribunal in its award on February 16, 2018," RInfra said in a statement.

According to the company statement, the Tribunal had ordered payment of interest at 15 per cent per annum on the total award amount if the Government of Goa fails to pay the entire award amount by April 15, 2018.

The development followed RInfra's winning a Rs 292 crore arbitration award in a case against the Goa government heard by a Joint Electricity Regulatory Commission-constituted tribunal in February.

The company had said in a statement earlier: "The need for arbitration arose due to prolonged non-payment of dues by the Goa government towards supply of electricity by Reliance Infrastructure from its 48 MW Goa power plant in Sancoale."

"The total outstanding dues along with interest as on October 31, 2017, amount to Rs 278 crore. The Tribunal has also awarded Reliance Infrastructure interest from October 2017 till the date of the award, which amounts to Rs 14 crore," the statement said.

It said the tribunal had upheld the company's contention that the rate of energy for the period from June 2013 to August 2014 was based on the varying prices of fuel and dollar exchange rate as was agreed to by the Goa government.

"The contention of the Goa government that the rated capacity of the plant was to be downrated, right from the second year of operation, for calculation of fixed charges since the parties had already agreed against downrating in 2007, was rejected by the Tribunal," the statement had said.

RInfra is one of India's largest infrastructure companies, having developed projects in several high growth sectors such as power, roads and Metro Rail, and is also a leading power utility.

The statement noted that the company has also forayed into the defence sector.


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