Reliance Infrastructure surges 6% as company wins ₹780 crore arbitration case

More than a decade ago, Reliance Infrastructure had won a contract to set up a 1,200 MW thermal power plant in Purulia in West Bengal for ₹3,750 crore.

The project was delayed due to disputes and other reasons, leading to DVC seeking damages from Reliance Infrastructure. Reliance Infrastructure, however, challenged this, and an arbitration tribunal in 2019 ruled in favour of the company and directed DVC to pay Rs 896 crore to the company.

DVC challenged the order of the arbitral tribunal in the Calcutta High Court, which was dismissed by the court.

Earlier this month, Reliance Infrastructure said it has slashed its standalone debt by 87% to ₹475 crore after it cleared outstanding dues of Life Insurance Corporation of India, ICICI Bank, and other lenders.

In stock exchange filings and press statements, Reliance Infrastructure said its standalone external debt has reduced from ₹3,831 crore to ₹475 crore. "Consequently, the net worth of the company will stand at ₹9,041 crore."

"Reliance Infra has cleared its funded outstanding dues to Life Insurance Corporation of India, Edelweiss Asset Reconstruction Company Limited, ICICI Bank, Union Bank, and other lenders," it said.

It paid ₹600 crore to Life Insurance Corporation of India (LIC) to settle all outstanding.

The company also reached an agreement with Adani Electricity Mumbai Ltd (AEML) and Adani Energy Solutions Limited (AESL), formerly known as Adani Transmission Ltd. Following this, both companies agreed to withdraw arbitration claims against each other.

Reliance Infra had in 2022 filed an arbitration claim of ₹13,400 crore in relation to a deal to sell its Mumbai power-distribution business to Adani Transmission Ltd.

It did not give details of the agreement reached with the Adani Group firm.