Yedeshi Aurangabad Tollway Ltd (YATL), a special purpose vehicle of IRB Infrastructure Trust, has won an arbitration award of Rs 1,720 crore for a highway project, a statement said on Sunday.
IRB Infrastructure Trust's SPV, YATL, secures a Rs 1,720 crore arbitration award against NHAI for the Yedeshi Aurangabad highway project. The award compensates for time and cost overruns due to delays and Force Majeure events, with an additional 689-day concession extension.
Yedeshi Aurangabad Tollway Ltd (YATL), a special purpose vehicle of IRB Infrastructure Trust, has won an arbitration award of Rs 1,720 crore for a highway project, a statement said on Sunday.
The YATL had initiated arbitration proceedings against the National Highways Authority of India (NHAI) after the authority disputed the company's claim for the extension of the concession period by 870 days and compensation of Rs 1,751 crore, the statement said.
IRB Infrastructure Developers Ltd is the sponsor of IRB Infrastructure Trust. IRB was the EPC contractor for YATL and continues to be the project manager for YATL.
The arbitration was based on the compensation payable to the IRB towards time and cost overrun suffered during the construction period on account of delays attributable to the NHAI and certain Force Majeure events, it added.
After thoroughly hearing both sides, the statement said the Arbitration Tribunal has directed NHAI to pay compensation of Rs 1,720 crore including Interest payable as on date of award.
The Arbitration Tribunal has directed NHAI to grant extension of 689 days to the concession period, the statement added.
IRB incorporated YATL for implementation of Yedeshi Aurangabad NH211 BOT highway project and executed the concession agreement in May 2014.
YATL commenced construction of the project from July 1, 2015, and it was scheduled to be completed within 910 days i.e. December 26, 2017. However, due to delay in handing over of land and for other reasons attributable to NHAI, the project completion on entire project length was delayed and the project was finally completed on September 24, 2020, the statement said.
As a result of above delay, YATL incurred time and cost overrun for which it claimed compensation from NHAI on March 12, 2021. The same was disputed by NHAI and led to arbitration.