Tata Power shares fall over 2%: Here is what happened

The company said that the arbitral tribunal has issued an award, which the company received after close of business hours on July 1, 2025, in the arbitration proceedings which were initiated by Kleros against Tata Power on November 30, 2020, and the oral hearings of which had concluded in February 2024.

"The three-member arbitral tribunal, with a majority of 2:1, has partially allowed the claim that Kleros had filed in these arbitration proceedings and has awarded Kleros damages in the sum of (a) USD 490,320,000 with simple interest of 5.33% from November 30, 2020, till the same is paid and (b) the cost of USD 8,289,020.46 with simple interest of 5.33% from July 1, 2025, till the same is paid," the filing said.

Tata Power is in the process of reviewing the contents of the award and is evaluating all options, including challenging the award, it said.

Tata Power: Recent updates

Last week, Tata Power said it applied to distribute electricity to various pockets of Maharashtra as part of its efforts to expand beyond the financial capital.

The company has filed for a licence across key growth regions, including parts of Mumbai, Pune, Sambhaji Nagar and Nashik, the company officials added.

It can be noted that through amendments made to the Electricity Act, private distribution companies are allowed to apply to serve various parts.

However, they were hesitant to apply due to the high investments required for setting up such infrastructure.

In 2022, Tata Power's rival Adani Group, with which it competes in Mumbai suburban areas, applied for select areas and expressed intent to invest up to ₹5,700 crore towards the initiative.