Reliance Infrastructure Ltd. (RInfra) is set to receive an arbitration award of ₹595 crore from Damodar Valley Corporation (DVC) by July 31. In addition, the company will also receive ₹303 crore by way of bank guarantees.
This comes after the Supreme Court passed an order on May 31 asking DVC to furnish an undertaking, stating that it will comply with the directions of the court. The chairman of DVC has furnished the said undertaking on June 6.
Reliance Infra had invoked arbitration in April 2017 after a dispute arose between the parties on account of delays in the completion of an EPC contract awarded by DVC for the construction of a 2x600 MW coal-based power plant in Purulia, West Bengal. The arbitral tribunal ruled in favour of Reliance Infra and directed DVC to pay ₹898 crore to the company and also release six bank guarantees aggregating to ₹353 crore within one month from the date of award.
The award was challenged by DVC in the Calcutta High Court. The matter eventually reached Supreme Court and the apex court directed the DVC to make the payment to Reliance Infra within eight weeks.
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