Reliance Infrastructure won Arbitration award of Rs 350 crore, including interest, against Government of Goa.
The matter went into arbitration when Goa state utility delayed payments to Reliance Infrastructure for power supplied from its 48 MW-Goa Power Plant in Sancoale.
The Arbitration Tribunal, on February 16 2018, had ordered the Government of Goa to pay Rs 350 crore, including interest, in favour of Reliance Infrastructure. The Arbitral Tribunal has also directed that in the event of Government of Goa fails to comply with the award, interest at the rate of 15% per annum will be payable in favour of Reliance Infrastructure Ltd.
As per the Tribunal order, the Government of Goa has deposited in Court, Rs 50 crore in November 2019 and Rs 44 crore on 20th December 2019. Pursuant to the recent Niti Aayog circular, Reliance Infrastructure will request Government of Goa to pay balance of 75% of the Arbitral award against Bank Guarantee immediately.
The proceeds will be used to pay lenders and reduce the debt of Company. Reliance Infrastructure aims to be debt-free in 2020.
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