Reliance Infrastructure has won an arbitration award of ₹292 crore against the Goa Government.
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 Arbitration Tribunal has ordered the State to pay up by April 15. The Tribunal has also ordered payment of interest at 15 per cent per annum on the total award amount if the State government fails to pay the entire award amount by the deadline.
The Joint Electricity Regulatory Commission had constituted the Tribunal under the new rules laid down in 2015. The tribunal began proceedings in January 2016 and pleadings and arguments by both the parties were completed in 12 sittings.
Outstanding dues
The total outstanding dues along with interest as on October 31, 2017, amount to ₹278 crore. The Tribunal has also awarded Reliance Infrastructure interest from October 2017 till the date of the award, which amounts to ₹14 crore.
“The contention of Reliance Infrastructure Ltd that the rate of energy for the period from June 2013 to August 2014 was based on the varying prices of fuel and the dollar exchange rate as was agreed to by the Goa Government, was upheld by the Tribunal,” said a statement from Reliance Infrastructure.
“The contention of the Goa Government that the rated capacity of the plant was to be down-rated, right from the second year of operation, for calculation of fixed charges, since the parties had already agreed against down-rating in 2007, was rejected by the Tribunal,” it added.