Gayatri Project wins arbitration award worth Rs.914.3 cr for Nagaland Project

HYDERABAD | MUMBAI | AHMEDABAD-GANDHINAGAR-RAJKOT – In a regulatory filing submitted to the Indian Stock Exchanges, Hyderabad infra players Gayatri Projects Ltd said of having won arbitration award for Nagaland project amounting worth Rs.9,143 million rupees (~914.3 crore) rupees.

The company statement submitted to the Indian Bourses, titled “Award of Arbitration Claim WoÊh INR 9,143 Million,” read that Gayatri Projects is pleased to announce the award of an arbitration claim wofth INR 9,143 million, in favour of its JV with IL&FS Engineering & Construction Company Ltd (formerly known as Mytas Infra Ltd) for the Nagaland Project.

The proceeds from the award will be distributed in proportion to the work done by each partner & payment will be released on completion of the court process.


DELEVERAGING BALANCE SHEET

As guided by the company in FY19, Gayatri Projects is focusing its efforts on potentially monetizing its Arbitration awards & claims in order to continue deleveraging its balance sheet.

The arbitration award of INR 9,143 million will accrue an interest of 12% p.a. till realization of payment is done.

On finalization of the award claims, bank guarantees by the JV partners, worth INR 2,400 million will also be released.

Gayatri Projects continues to deliver on its stated strategy of deleveraging the balance sheet as well as improving its return ratios.

GPL & its JVs have been awarded, by different arbitrators/courts, a total of INR 6,000 mn (including interest upto April 2019).

Additionally, GPL & its JVs have claims outstanding of more than INR 24,000 million in different arbitral tribunals/courts.


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