Anil Ambani-led Reliance Infrastructure shares soared over 6 per cent on Friday after its arm Delhi Airport Metro Express Private Limited (DAMEPL) won an arbitration case and fetched the company a compensation of Rs 2,950 crore against DMRC. AT 10.54 am, share price of the company was trading 3.63 per cent up at Rs 613.45. The share price opened at Rs 630 and touched a high and low of Rs 630 and Rs 608, respectively, in trade so far. Sensex was trading 42.26 points down at 30,208.72 during the same time.
“DAMEPL, a subsidiary of RInfra, today announced that it has been awarded compensation of Rs 2950 crore by a three-member arbitral tribunal in a unanimous decision. The tribunal was constituted from a panel nominated by Delhi Metro Rail Corporation (DMRC),” Reliance Infrastructure said in a BSE filing.
The award to RInfra has been granted on the basis of termination provisions of the Concession Agreement where the arbitration tribunal has held termination by DAMEPL as valid. The compensation covers damage as a result of breach by DMRC of its obligations under the Concession Agreement and Material Adverse Effect on the ability of DAMEPL to perform its obligations under the Concession Agreement.
On the award compensation, Reliance Infra said, “Reliance Infrastructure participated in PPP model in the metro sector to lead the metro movement in the country through PPP but unfortunately had to terminate the Agreement. We welcome the award and hope it will encourage the private sector to participate in the nation-building process.”