A court of arbitration has directed VA Tech Wabag, a Chennai based company to pay a compensation of ₹37 crore to Travancore Titanium Products (TTP) Limited for a major snag in the neutralisation plant set by the company.
Arbitrator, Justice G.Sasidharan ruled that the company should give ₹31.12 crore as compensation and ₹6 crore as interest to TTP. The plant was set up for treating the effluent being discharged from TTP, so that it could be used for producing gypsum and the water treated for reuse.
As per the pact inked with the private company, the gypsum produced from the effluent should have the quality to be used for cement production. But the company could not honour its commitment and the TTP had to be closed for 25 days in May 2017, following an order from the Kerala State Pollution Control Board. The arbitration case was filed in the wake of the closure of the company.
