HCC Secures Rs 217.18 Crore Arbitration Award

HCC Secures Rs 217.18 Crore Arbitration Award

Hindustan Construction Company Ltd. (HCC) has secured an arbitration award of Rs 217.18 crore for the extension of time (EOT) cost claim in Lucknow-Muzaffarpur National Highway Project- Package IV. Of the total award, Rs 135.15 crore is the principal amount and Rs 82.03 crore is the interest component.

This is the sixth arbitration decision given in HCC’s favour, for claims from National Highway Authority of India (NHAI) in FY 14-15. The total value of arbitration awards received from NHAI is Rs. 441 crore. In the current financial year, the total arbitration awards received by HCC in its favour for its various projects are Rs. 773 crore.

The three-member arbitration panel, which heard the matter for over 20 months, unanimously ruled that NHAI should pay Rs 217.18 crore to HCC. The panel also instructed that if the amount is not paid within 90 days, the total amount awarded, including the interest payment, would carry an interest of 15% from the date of award, till the date of payment.

HCC had moved the arbitration panel over a delay of 28-month in executing the Rs 255 crore Lucknow-Muzaffarpur Package IV road project. The delay was caused due to non-handing of land in time to execute the work. The scope of work included 4-laning of 7.25m wide, 29km of bituminous/concrete pavement road on NH-28 between Ayodhya and Gorakhpur.

At present, HCC is lowest bidder in contracts worth Rs 4,733 crore for which the final orders are yet to be received. The order-book position as of December 2014 stands at Rs 14,307 crore.