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Will nixing royalty pact help CG Power?

| Updated on November 28, 2019 Published on November 28, 2019

 

CG Power and Industrial Solutions has rescinded the royalty agreement with Avantha Holdings. The agreement had envisaged 50 per cent of the brand royalty payable to AHL in perpetuity aggregating to ₹411.20 crore for part-settlement of outstanding loans and reducing the regular royalty payments to 0.50 per cent of its annual consolidated net operating revenues. Following this, CG Power does not have any liability towards brand royalty, including the monetisation proposal.

Published on November 28, 2019
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