Team Herald
PANJIM: The State government has paid an amount of Rs 94 crore to Reliance Infrastructure, from the arbitration award of Rs 350 crore, which the company had won.
In September, North Goa District and Sessions Court had dismissed State’s application challenging the Arbitration Tribunal order passed on February 16, 2018.
The tribunal had ordered the State to pay Rs 292 crore to Reliance Infrastructure by April 15, 2018. It had also ordered payment of interest at 15 per cent per annum on the total award amount if Goa failed to pay the entire award amount by the deadline.
The matter went into arbitration after State utility delayed payments to Reliance Infrastructure for power supplied from its 48 megawatt power plant in Sancoale.
In a press statement issued as reported by national news agency, Reliance Infrastructure said it has received Rs 94 crore from the arbitration award of Rs 350 crore.
It has said that the State government deposited Rs 50 crore in the court last month and Rs 44 crore on December 20.
After the recent Niti Aayog circular, Reliance Infrastructure will request the State government to pay balance of 75 per cent 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,” it said in a statement.
