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SPML Infra update on arbitration proceedings for Bhilwara-Jaipur Toll Road

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Capital Market
Last Updated : Nov 01 2019 | 12:51 PM IST
SPML Infra announced that its subsidiary Bhilwara Jaipur Toll Road has got Rs 191 crore Interim Relief under Arbitration proceedings against State of Rajasthan.

The 212 kilometer Bhilwara-Jaipur Toll Road was developed by the subsidiary company but with effect from 1 April 2018, Govt. of Rajasthan had exempted private vehicles to pay toll in 0-212 km toll road (state highway) from Jaipur to Bhilwara. Due to this decision, the daily toll collection was badly affected and the company, Bhilwara Jaipur Toll Road terminated the concession agreement on the ground of material default by State Govt through a notice dated 3 October, 2018. An arbitrator was appointed by the Hon'ble High Court of Rajasthan to resolve the matter.

The regular arbitration proceedings of this project are going on and claim of termination payment of Rs.578 crore is in process of hearings.

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First Published: Nov 01 2019 | 12:37 PM IST

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