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Reliance Infrastructure has won a ₹200-crore arbitration award against National Highway Authority of India (NHAI) in the proceeding started back in 2016.
Reliance Infrastructure went to arbitrage due to prolonged delay in providing land by the NHAI to TD Toll Road Private Ltd (TD Toll Road), its wholly-owned subsidiary building and operating 87-km-long four-lane national highway NH45 road in Tamil Nadu. Delays from NHAI side resulted in cost over-run during construction and change in location of toll plaza from km 360+450 to km 382+850 on NH 45, the company said.
The three-member Arbitration Tribunal has on August 31 ordered NHAI to pay ₹150 crore to the private developer by November 29, 2018. If not paid by the deadline, NHAI will have to pay interest at 12 per cent per annum on the amount.
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 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 ₹50 crore.
The proceedings of the Tribunal were held for about two years starting August 2016, and all pleadings and arguments by both the parties were completed in 42 sittings. 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.
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