HCC secures Rs 217 crore arbitration award from NHAI

This is the sixth arbitration decision won by HCC, for claims from NHAI in FY 14-15

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. Of the total award, Rs 135.15 crore is the principal amount and Rs 82.03 crore is the interest component.

A three-member arbitration panel, which deliberated 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 months 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.

This is the sixth arbitration decision won by HCC, for claims from National Highway Authority of India (NHAI) in FY 14-15. At present, HCC’s order-book position as of December 2014 stands at Rs 14,307 crore.