1. RInfra approaches HC for early payment of arbitration award

RInfra approaches HC for early payment of arbitration award

Reliance Infrastructure (RInfra) has filed a petition in the Delhi High Court (HC) for an early payment of the arbitration award it won last week for Delhi Airport Metro Express Private (DAMEPL).

By: | Mumbai | Updated: May 18, 2017 7:16 AM
The petition has been filed under Section 9 of the Arbitration and Conciliation Act, 1996, the company said in a statement on Wednesday. (Reuters)

Reliance Infrastructure (RInfra) has filed a petition in the Delhi High Court (HC) for an early payment of the arbitration award it won last week for Delhi Airport Metro Express Private (DAMEPL). The petition has been filed under Section 9 of the Arbitration and Conciliation Act, 1996, the company said in a statement on Wednesday. RInfra had won compensation to the tune of Rs 2,950 crore from Delhi Metro Rail Corporation (DMRC) which relates to a breach of DMRC’s obligations under the concession agreement for the DAMEPL.

In all, RInfra-promoted DAMEPL is entitled to receive compensation of Rs 4,670 crore which includes interest. Of this, RInfra is expected to receive Rs 3,500 crore under government-approved guidelines where public-sector units have to pay 75% of the award amount, even if they propose to challenge the arbitral award.

With several PPP (public private participation) projects in trouble, the total amount under arbitration at the end of August 2016 stood at Rs 1lakh crore. A sum of nearly Rs 70,000 crore had been provided by 28 public-sector units as contingent liabilities in their balance sheets for 2014-2015. So far, of the Rs 15,000 crore that is stuck in various stages of arbitration, RInfra has won awards worth around Rs 5,000 crore. Another Rs 10,000 crore is blocked in four road projects and the Mumbai Metro.

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