The government today said its decision to annul the Antrix-Devas deal was taken considering the "essential security interests" through well-reasoned, valid and proper consultations in the Cabinet Committee on Security (CCS).
In a statement, Department of Space (DoS) said the limited liability of compensation will be only up to 40 per cent of the value of the investment and the exact quantum has not yet been determined.
The government will also examine legal recourse in this matter.
"The Tribunal has said that the government of India's essential security interest provisions of the Treaty do apply in this case to an extent. The limited liability of compensation shall be limited to 40 per cent of the value of the investment. The precise quantum has not been determined as yet.
"We also remain committed to pursue our larger national interests including sovereign strategic security interests in this matter," the statement said.
India has lost the arbitration case in an international tribunal over its PSU Antrix Corp annulling the contract with city-based private multimedia firm Devas and may have to shell out millions of dollars as compensation.
The Permanent Court of Arbitration (PCA) tribunal based in the Hague ruled that the Indian government had acted "unfairly" and "inequitably" in cancelling the contract involving use of two satellites and spectrum.
The tribunal has found that the Indian government's actions in annulling the contract and denying Devas commercial use of S-band spectrum constituted an expropriation, Devas Multimedia Private Ltd. Said here.
The DoS said the Tribunal has dismissed the claims as regards violation of other provisions of the Treaty like unreasonable or discriminatory measures and the one of the Most Favoured Nation treatment.
"The government of India reiterates that it had invoked the essential security interests through a well reasoned, valid and proper CCS decision," the DoS said.
