Ind-Barath Energy (Utkal) Limited, arm of JSW Energy Limited, said an Arbitral Tribunal has issued an award in its favour against Tamil Nadu Generation and Distribution Corporation Limited (Tangedco).
Ind-Barath Energy had initiated arbitration against Tangedco regarding the disputes arising out of the power purchase agreement entered between both parties in 2013. The agreement was for procurement of 500 MW by Tangedco.
In the arbitration, the company sought return of contract performance bank guarantee of ₹120 crore, refund of ₹11.02 crore deducted by Tangedco from monthly bills.
Ind-Barath Energy also alleged failure to provide standby letter of credit, unilateral deduction of tariff and wrongful termination of power purchase agreement and sought damages from Tangedco.
In a stock exchange filing, the company said the Arbitral Tribunal has allowed its claim for recovery of ₹120 crore from Tangedco along with 9% interest from the date of encashment of performance bank guarantee by the state power utility till payment of the entire amount.
The Tribunal also rejected Tangedco’s counterclaim for recovery of ₹118 crore penalty and ₹200 crore towards termination charges, it added.
