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Ashoka Buildcon receives unfavourable arbitration award for PNG Road project

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Capital Market
Last Updated : Mar 18 2019 | 9:31 AM IST
Ashoka Buildcon announced that its subsidiary, Ashoka Concessions, has been directed to pay Rs.57.33 crore plus interest to L&T Infrastructure Development Projects ('LTIDPL') towards share of shortfall funding of SPV - PNG Tollway.

PNG Tollway was running project of Design, Engineering, Finance, Construction, Operation and Maintenance of 6 laning of existing 2 laning of the Pimpalgaon-Nashik-Gondhe section of NH-3 from Km.380.00 to Km.440.00 in the state of Maharashtra under NHDP Phase IIIA on Build Operate and Transfer (BOT) basis, awarded by NHAI ('Project'). Project is terminated by PNG Tollway on 25 February 2016. L&T IDPL along with its group companies own 74% and Ashoka Concessions owns 26% shareholding of PNG Tollway, respectively.

Ashoka Concessions may approach appropriate forum for setting aside the arbitral award against it.

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First Published: Mar 18 2019 | 9:13 AM IST

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