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Anil Ambani-backed Reliance Infrastructure Ltd has been asked to pay ₹1,215 crore by a Singapore arbitration court in relation to its dispute with the Shanghai Electric Group Co. Ltd. (SEGCL) over Sasan Ultra-Mega Power Project.
On June 26, 2008, SEGCL had entered into an agreement with Reliance Infra Projects (UK) Ltd to supply equipment, erect the main body of the turbines and generators and provide supervision services to Reliance UK in relation to erection and commissioning of six units of boilers, turbines and generators, for construction of the coal-fired super critical thermal ultra-mega power project at Sasan, Madhya Pradesh.
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The two-day e-auction process is expected to be held in the fourth week of DecemberReliance was supposed to pay ₹9,641 crore to the SEGCL. As of August 2019, SEGCL was owed an amount of ₹995 crore for which, a notice of dispute dated August 23, 2019, was issued to Reliance seeking compliance of its obligations. The notice further called for curing Reliance UK’s breach of obligations by making payments within 60 days of the notice. The notice was not complied with, which compelled SEGCL to invoke arbitration proceedings at the Singapore International Arbitration Centre.
Reliance Infra said, “It is in process of undertaking detailed appropriate proceedings, as per legal advice, appropriate steps to safeguard its interests.”
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