[ By Bobby Anthony ]The Anil Ambani-owned Reliance Infrastructure has stated that it has received Rs 94 crore from the Goa state government against an arbitration award of Rs 350 crore and the proceeds will be used to pay lenders as well as reduce the company's debt.The company also stated that it will request the Goa state government to pay the balance of 75% of the arbitral award against...
The Anil Ambani-owned Reliance Infrastructure has stated that it has received Rs 94 crore from the Goa state government against an arbitration award of Rs 350 crore and the proceeds will be used to pay lenders as well as reduce the company's debt.
The company also stated that it will request the Goa state government to pay the balance of 75% of the arbitral award against the bank guarantee “immediately”.
In a regulatory filing, the company said that in 2018, the Arbitration Tribunal had ordered the Goa state government to pay it Rs 350 crore, including interest.
“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 company stated.
“The Arbitral Tribunal has also directed that in the event of the Government of Goa failing to comply with the award, interest at the rate of 15% per annum will be payable in favor of Reliance Infrastructure Ltd,” the company added.
The Goa government had entered into a power purchase agreement (PPA) with Reliance Infrastructure on January 10, 1997, in order to commission as well as operate an open-cycle electricity generation station of 39.8 MW at Sancoale in that state.
The station was to be operated by the company on naphtha, subject to the parties consensually agreeing to the use of any alternate fuel.
The term of the PPA was 15 years from the date of commencement of commercial operations of the station on August 14, 1999.
“During the term of the PPA, several disputes arose between the parties regarding the computation and payment of invoices raised by the company under the period utilizing naptha as well as the subsequent period in which there was a shift to regasified Liquified Natural Gas,” the company stated in a regulatory filing.
As a result, on July 31, 2014, Reliance Infrastructure invoked the dispute resolution provisions under the PPA and the matters were placed before an arbitration panel, the company stated.