Reliance Infrastructure has won an arbitration award of at least £40.5 million with the Calcutta high court ruling in its favour in a dispute with West Bengal-based Damodar Valley Corp (DVC). The total award is worth about £135.4 million, including release of a bank guarantee of £35.4 million by DVC, a public sector company. Earlier, DVC had released the bank guarantee and paid £59.5 million to the company.
More than 10 years ago, Rel Infra had won a contract to set up a thermal power project in Raghunathpur in WB for £375 million. The project went into several disputes and delays due to which DVC had sought damages from Rel Infra. However, Rel Infra challenged this and an arbitration tribunal agreed with the company. After several rounds of court cases, Rel Infra is now set to receive the balance £40.5 million from DVC.