Comments
Bangalore Elevated Tollway Private Ltd (BETPL) has been awarded Rs 492 crore towards a claim filed against National Highways Authority of India (NHAI) for delay in project execution.
The Arbitration Tribunal has given a majority award for Rs.492 crore (Rs.250 crore as Principal and Rs.242 crore as interest), towards the claim filed by BETPL, the company said in a statement.
BETPL is a Special Purpose Vehicle (SPV) promoted for the development of four-lane elevated and six-lane road in Bangalore, which leads to Infosys, Wipro, Tech Mahindra and others. IL&FS Engineering and Construction Company Limited, an IL&FS group company, has 24 per cent stake in BETPL and is entitled to Rs 118 crore from the total claim awarded by the tribunal.
NHAI had awarded the project to this SPV on Built, Operate and Transfer (BOT) – Toll basis in January 2006. Further, the scope of project involved construction of four lane elevated highway, improvement and expansion of certain sections on this route.
BETPL had filed a claim against the NHAI in the Tribunal as per the terms of the contract pertaining to matters related to additional cost incurred due to extension of construction period, which it termed as prolongation cost.
This is not the first time that NHAI had to pay arbitration-related claims. West Haryana Highways Projects got over Rs 750 crore arbitration award against NHAI a few months back, which was the largest that NHAI had to pay out
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.