RInfra will pay 1,215 black rupees as arbitration fee to Shanghai Electric Group | Daily News Byte

RInfra will pay 1,215 black rupees as arbitration fee to Shanghai Electric Group

 | Daily News Byte

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A Singapore arbitration court has asked Anil Ambani-backed Reliance Infrastructure Ltd to pay INR 1,215 crore in connection with a dispute with Shanghai Electric Group Co. Ltd. (SEGCL) regarding the Sasan Ultra-Mega Power project.

On June 26, 2008, SEGCL entered into an agreement with Reliance Infra Projects (UK) Ltd for the supply of equipment, installation of the main body of turbines and generators and the provision of supervision services to Reliance UK in connection with the installation and commissioning of six units of boilers, turbines and generators, for construction of Super Critical Thermal Ultra Mega Coal Fired Power Project at Sasan, Madhya Pradesh.

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9,641 crores was to be paid by Reliance to SEGCL. As of August 2019, SEGCL owed an amount of ₹995 crore for which a notice of dispute was issued to Reliance dated 23 August 2019 asking it to meet its obligations. The notice further called for Reliance UK to cure the breach by making payment within 60 days of the notice. The notice was not complied with, forcing SEGCL to initiate arbitration proceedings at the Singapore International Arbitration Centre.

Reliance Infra said, “Detailed due process is in progress, as per legal advice, appropriate steps are being taken to protect its interests.



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