Hindustan Construction Company Ltd (HCC) today said its board has approved additional Rs 1,500 crore bank guarantee limits for release of arbitral award amount following government's approval to revive the construction sector.
The board has approved "additional Rs 1,500 crore bank guarantee limits for release of arbitral award amount as per Cabinet Committee on Economic Affairs (CCEA) approval for revival of the construction sector, directing government agencies to pay 75 per cent of the arbitral award amount against margin free bank guarantee."
The board of directors of the company gave the nod in a meeting held yesterday, HCC said in a filing to BSE.
The company had earlier said that CCEA's decision to pay 75 per cent of the arbitral award amount will halve HCC's debt.
HCC has arbitration awards for Rs 3,427 crore as of September 30, 2016. Further claims worth around Rs 4,173 crore are in arbitration process, it had earlier said.
About 70 per cent of these cases were at the initial stage of arbitration process and the company has already given consent to transfer them under new arbitration Act, it had said.
"As such, we expect to get these additional awards within next 12 months duration," it had said.
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