State’s appeal against Rs 292 cr Reliance Infra award dismissed

the goan I network

PANAJI   

In a major setback to the Goa government, the court of Sessions Judge Irshad Agha on Thursday dismissed its appeal challenging an arbitration award granted to Anil Ambani-owned Reliance Infrastructure Limited entailing a massive Rs 292-crore financial burden on the already cash-starved State exchequer.   

The judge pronounced a one-line oral order in his court which was designated Arbitration Appellate Authority by a directive of the Bombay High Court at Goa.   

The order also granted a six-week stay on its own order to permit the State to appeal against it before the Bombay High Court.   

Goa’s Advocate General Devidas Pangam meanwhile told The Goan that the issue of appealing against the order will be considered by the State government.   

The issue relates to the controversial 48 MW thermal power plant operated by Reliance Infra Ltd and supplying power to the Goa government’s Electricity Department under a 1996-97 power purchase agreement (PPA).   

The plant had wound up operations in 2014 in accordance to the term of PPA but issues related to the full and final payment to the Independent Power Producer for power supplied had remained unresolved after questions were raised over the company juggling pricing formulae related to variables such as fuel costs and fluctuating US dollar rates.   

Questions on the quantum of dues owed to the company were flagged by the government of the late Manohar Parrikar in 2014 itself and negotiations had failed to break the deadlock.   

Finally, in October 2017, Reliance Infra Ltd referred the matter for arbitration before the JERC which constituted a tribunal to decide the dispute.   

Eventually in February 2018, days after Parrikar was diagnosed with the deadly