GIPL has won the arbitration award (Rs161.50 million) against NHAI for refusal to pay early completion bonus for two of its road projects
Gammon Infrastructure Projects Ltd (GIPL) has won the arbitration award for payment of early bonus from the National Highway Authority of India (NHAI) for two of its road projects. NHAI is expected to pay a bonus to GIPL for the early completion of two projects—Rajahmundry Expressway and Andhra Expressway.
“The arbitration has been unanimously decided in our favour,” said Parvez Umrigar, managing director, GIPL. While the NHAI has been struggling to fast-track the completion of its road projects, two of GIPL’s road projects were stuck in the arbitration process, awaiting realisation of the bonus amount for early completion.
The payment for these projects commissioned in 2004, ran into a dispute following NHAI’s refusal to pay the bonus amount.
The Rajahmundry Expressway project involved widening and strengthening of the 53-km stretch between Dharmavaram and Tuni in Andhra Pradesh on National Highway (NH-5), connecting Chennai and Kolkata.
GIPL had achieved the commercial operations date (COD) for this project on 20 September 2004, seventy days ahead of schedule. For this project, GIPL expected a bonus of Rs115 million from NHAI for early completion.
The Andhra Expressway project involved widening and strengthening of the 47-km stretch between Dharmavaram and Tuni in Andhra Pradesh on NH-5.
The project achieved COD on 30 October 2004, thirty days ahead of schedule. The bonus expected from NHAI for this project was Rs46.50 million.
Though the arbitration order has been unanimously decided in GIPL’s favour, NHAI has been given a period of 90 to 120 days to honour the order. “It now depends on them (NHAI) whether to abide by it or challenge it in a court,” added Mr Umrigar. The case has been under consideration since three years and the arbitration order has also spelt out a penalty of interest to be paid.
Following Reliance MediaWorks' open offer to buy 52.48% stake, another ADA group company has increased its stake in Fame India to 12.14% from 6%
Reliance Capital Partners has hiked its stake to 12.14% in Fame India, a day after another Anil Dhirubhai Ambani Group (ADAG) company Reliance MediaWorks announced an open offer for a majority stake in the theatre chain, reports PTI.
Fame India in a disclosure to the National Stock Exchange (NSE) on Monday said that Reliance Capital Partners has acquired 21.28 lakh shares, representing 6.12% stake, in Fame between 6th and 19th February 2010.
Pursuant to the purchase, Reliance Capital Partners' stake in Fame India has increased to 12.14%, up from 6.02% earlier.
Yesterday, ADAG company Reliance MediaWorks announced an open offer to acquire 2.16 crore shares, or 52.48% stake, in Fame at Rs83.40 per share, countering an existing takeover bid by rival Inox Leisure.
Inox Leisure had recently signed an agreement to acquire 43.28% promoters' stake in Fame India for Rs66.48 crore and earlier this month made an open offer to buy another 20% stake at Rs51 per share.
Reliance MediaWorks had said that it would seek action against Fame for selling promoters' stake in the theatre chain to Inox at a price much lower than it had offered earlier. If the open offer gets fully subscribed, ADAG will hold 64.64% stake in Fame India.
DoT will issue a notice inviting applications from potential bidders by the end of this week and all pending issues have been resolved, the telecom minister has said
The government is all set to start the process of auctioning of spectrum for 3G mobile services as all issues with the law and the finance ministries have been resolved, telecom minister A Raja said on Monday, reports PTI.
"The Department of Telecom (DoT) will issue Notice Inviting Applications (NIA) from the potential bidders by the end of this week. All pending issues have been resolved," Mr Raja said at the sidelines of a function in New Delhi.
Asked about the date for auction of spectrum, he said, "You can take 40-45 days from the date of issuing NIA."
Going by this, the auction cannot be completed within the current financial year with only 36 days remaining.
The law ministry had earlier objected to a clause in the draft NIA that successful bidders may ask for compensation in case they were not allotted spectrum within the stipulated time period. On the issue of the number of slots to be auctioned, sources said that three slots would be auctioned across the nation, but in some states the government may decide to allow four private players.
The government had earmarked Rs35,000 crore of proceeds from the sale of spectrum in the current financial year, but due to uncertainty over the number of slots and compensation clause, which has been resolved now, the auction is likely to be delayed.