Bharat Road Network shares soared 20 per cent to hit the upper circuit of Rs 115.20 on the BSE after the company said its arm has won an arbitration award of Rs 322.77 crore against the National Highways Authority of India (NHAI) for a project in Odisha.
The company said it had referred the matter to arbitration after NHAI failed to hand over the land required for the project.
"Orissa Steel Expressway Private Limited (OSEPL), one of the subsidiaries of the company, has won an arbitration award of Rs 322.77 crore in the matter of arbitration proceedings between OSEPL and NHAI," the company said in a regulatory filing on Monday.
OSEPL was incorporated for four/two laning of Rimuli- Roxy-Rajamunda section of NH-215 in Odisha to be executed as build, operate and transfer (BOT toll) project on design, build, finance, operate and transfer (DBFOT) pattern. The project fell under the National Highways Development Project (NHDP) phase-III and OSEPL had signed a concession agreement with NHAI on July 6, 2010, the company said.
"The project was foreclosed majorly due to delay in handing over of the requisite land from NHAI. Consequently, OSEPL had referred the matter to arbitration for the settlement of its claims. Arbitration commenced on April 18, 2018, and concluded on December 15, 2018, and the award was published on March 31, 2019," it said.
Bharat Road Network Limited (BRNL) is a road BOT (build operate transfer) company focused on development implementation operation and maintenance of roads and highways projects. The company is involved in the development operation and maintenance of national and state highways in several states in India with projects in Uttar Pradesh, Kerala, Haryana, Madhya Pradesh, Maharashtra, and Odisha.