Sadbhav Engg wins arbitration award of Rs. 192 crore

The company's SPV won an arbitration award against NHAI amounting to Rs. 192 crore. The company had made a total claim of Rs. 408 crore plus interest. 

The arbitration award is won by Special Purpose Vehicle (SPV) promoted by Sadbhav Engineering and Gammon India. The SPV Mumbai Nasik Expressway Limited (MNEL) was formed in 2005 to develop, operate and manages the expressway. 

National Highways Authority of India (NHAI) appointed MNEL for the BOT project involving four-laning of the Vadape-Gonde, 99.5 km section of NH-3. The concession period for this project is 20 years, until October 2025. MNEL had filed an arbitration case against NHAI with a total claim amount of Rs. 408 crore plus interest. The court ordered an arbitration award on February 2, 2019 amounting to Rs. 192.20 crore which includes interest of Rs. 24.79 crore at12 per cent per annum. 

As per the agreement between MNEL, Sadbhav Engineering and Gammon, Sadbhav Engineering is entitled to receive 72 per cent of the awarded amount.

With this award, the company along with its subsidiary Sadbhav Infrastructure Project has won an arbitration award in four SPVs amounting to Rs. 308.42 crore, of which it has received Rs. 69.18 crore.

Meanwhile, the stock of was quoting Rs. 188.70 per share, down by 3.06 per cent on BSE in the closing hours of trade on Tuesday.