RInfra wins Rs 292-cr arbitration award against Goa government

By: |
Mumbai | February 27, 2018 5:28 AM

The Arbitration Tribunal upheld the contention of Reliance Infrastructure that the rate of energy for the period from June 2013 to August 2014 was based on the varying prices of fuel and dollar exchange rate as was agreed by the Goa government.

RInfra, goa government, RInfra wins arbitration awardThe Anil Ambani-led Reliance Infrastructure on Monday said that it has won an arbitration award of Rs 292 crore against the Goa government for prolonged non-payment of electricity dues. (PTI)

The Anil Ambani-led Reliance Infrastructure on Monday said that it has won an arbitration award of Rs 292 crore against the Goa government for prolonged non-payment of electricity dues. The Goa government and the company had a conflict over the pricing of energy from the company’s 48 MW Sancoale power plant in Goa, which led to non-payment of dues by the government. The Arbitration Tribunal upheld the contention of Reliance Infrastructure that the rate of energy for the period from June 2013 to August 2014 was based on the varying prices of fuel and dollar exchange rate as was agreed by the Goa government. The Tribunal in its award said the Goa government must make the payment by April 15, failing which the government will have to pay a penalty at a rate of 15% on the total dues.

The Goa government’s contention that the rated capacity of the plant was to be downrated, right from the second year of operation, for calculation of fixed charges was rejected. The total outstanding dues along with interest as on October 31, 2017, amounted to Rs 278 crore. The Tribunal has also awarded Reliance Infrastructure interest from October 2017 till the date of the award, which amounts to Rs 14 crore,” the company said in a filing to the exchanges. The Joint Electricity Regulatory Commission had constituted the Tribunal under the new rules laid down in 2015. The proceedings of the Tribunal were held for about two years and all pleadings and arguments by both the parties were completed in 12 sittings, the company said.

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