Reliance Infra jumps 5 pc on winning Rs 1,250 cr arbitration award against DVC

Shares of Reliance Infrastructure on Monday climbed 5 per cent after the company said it has won an arbitration award of Rs 1,250 crore against Damodar Valley Corporation (DVC).

The scrip jumped 4.98 per cent to Rs 24.25, its upper circuit limit, on the BSE.

At the NSE, it gained 4.97 per cent to Rs 24.30, its highest trading permissible limit for the day.

The proceeds will be used to pay lenders and reduce the debt of the company, the infrastructure firm said in a filing to the BSE.

A three-member arbitration tribunal unanimously gave the award in favour of Reliance Infrastructure on Saturday, the filing said.

Reliance Infrastructure was the engineering and construction contractor for DVC's 1,200 MW Raghunathpur thermal power project in West Bengal, commissioned in 2012.

The arbitration tribunal awarded the case in favour of Reliance Infrastructure and directed DVC to pay Rs 896 crore and return the bank guarantees of Rs 354 crore within four weeks, or pay additional interest at the rate of 15 per cent per annum for any delay in payment beyond four weeks.