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RInfra moves Delhi HC for early payment of arbitration award

As on March-end, RInfra’s debt stood at Rs 16,500 crore

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Reliance Infrastructure (RInfra) has moved Delhi High Court for early payment of arbitration award it has won against Delhi Metro Rail Corporation (DMRC) for its subsidiary Delhi Airport Metro Express Pvt Ltd (DAMEPL).

Last week, Anil Ambani-led RInfra won an arbitration award of Rs 4,670 crore, of which Rs 2,950 crore is the outstanding and the balance Rs 1,720 crore is the interest accumulated during a period of over three years.

"RInfra will use the entire proceeds of the arbitration award to repay its lenders. As per the Government of India guidelines, RInfra is expected to get 75% or Rs 3,500 crore immediately," read a company statement.

The company shared that it had filed the petition under Section 9 of the Arbitration and Conciliation Act, 1996 for an early payment of the Arbitration award.

As on March-end, RInfra's debt stood at Rs 16,500 crore. During this fiscal, the company is expected to pare its debt by over 50%, for which it plans on using the 75% or Rs 3,500 crore of the amount it has won in arbitration.

Already the company has sold a couple its of businesses like Reliance Cement and certain transmission assets to Birla Corporation and Adani Transmission, respectively, to reduce its debt levels.

In September 2013, a three-member arbitration tribunal was formed out of a DMRC-nominated panel. After hearing the case for about three-and-a-half years or 68 hearings, the tribunal issued its final order by awarding compensation to DAMEPL.

DMRC declined to respond to DNA Money's query on the petition filed in Delhi High Court. Last week, DMRC, in a statement had mentioned, "We are studying the award given by the arbitrators in the airport express line case and will decide our further course of action in the manner after due deliberation."

DEBT-CUT PLANS

  • As on March-end, RInfra’s debt stood at Rs 16,500 crore. During this fiscal, the company is expected to pare its debt by over 50%
     
  • It plans to use the 75% or Rs 3,500 crore of the amount it has won in arbitration for debt reduction
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