BGR Energy executes dispute settlement pact with Hitachi

Engineering firm BGR Energy Systems has executed an agreement with two Hitachi firms settling disputes with them.
According to a statement by BGR Energy, it has entered into an agreement with Hitachi Ltd, Japan (HTC) and Hitachi Power Europe GmbH, Germany (HPE) on March 30, 2016 at Tokyo.
It has become legally binding with effect from April 29, 2016 upon fulfillment of the conditions mentioned therein.
"The agreement provides for certain payments to be made by HTC to the company in a phased manner over a period of time on achievement of number of milestones/events/transactions so as to realise the objectives mentioned herein above," BGR Energy Systems Ltd informed BSE today.

It provides for execution of NTPC contracts for Solapur (2x660 MW) and Meja (2x660 MW) of supercritical steam generators (Boilers)and Lara (2x800 MW) supercritical steam turbines and generators (STG).
Besides this, the pact provides for certain arrangement with respect to the future of the JV relationship between HTC, HPE and the company with regard to the existing JV companies -- BGR Boilers Pvt Ltd and BGR Turbines Company Pvt Ltd after completion of the NTPC projects in compliance of the contract and related conditions.

These JVs were formed in 2010 for technical and financial collaboration to make super critical boilers and steam turbines and generators.

In fulfillment of the conditions of the agreement, the company said it has filed relevant applications for withdrawal of all pending litigations and other legal proceedings filed against HTC, HPE, Mitsubishi Heavy Industries Ltd, Mitsubishi Hitachi Power Systems Ltd and Mitsubishi Hitachi Power Systems Europe GmbH.
BGR Energy Systems stock was trading up 14.37 per cent at Rs 121.00 a piece on BSE.