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Reliance Power wins $56-mn arbitration award in Indonesia coal mine dispute

The contractual dispute is in relation to issues faced over starting operations in three coal mining concessions in Indonesia that Reliance Power had acquired in 2010

Amritha Pillay  |  Mumbai 

Reliance Power
Reliance Power (Photo: Reuters)

Anil Ambani-promoted Power on Thursday said one of its subsidiaries has won an arbitration award in a contractual dispute over its Indonesian coal mines. The company will receive $56 million as compensation.

Power Netherlands BV, a wholly-owned subsidiary of Power, has won an international arbitration award of $56 Million against Ltd (a Seychelles based Company) and Kokos Jiang," R Power said in a statement.

In 2010, had acquired 100 per cent economic interest in three concessions in This was acquired from Sugico Group, which is owned by Jiang. The contractual dispute is in relation to issues faced over starting operations under these concessions.

According to the company, these concessions have total coal resources of around 1.5 billion tonnes with the potential to produce up to 30 million tonnes of coal per annum.

In the 2010-2011 period, major power producers in India saw investments in overseas coal assets as a lucrative option to secure fuel supply for their power business back home. was amongst others like Tata Power, who chose to invest in coal assets in However, most of these overseas investments by power ran into rough weather owing to fall in coal prices, change in coal import policy, environmental issues and other problems faced in starting operations.

The arbitration proceedings were conducted by an constituted under International Arbitration Centre (SIAC) rules in

First Published: Thu, August 23 2018. 22:55 IST