Arbitration Charge: NTPC To Explore Statutory Remedies
Energy major NTPCNSE 0.04 % has decided to explore “statutory remedies” relating to a Rs 2,015-crore arbitration charge slapped on it in a fuel-supply dispute against Jindal ITF (JITF). The charge, believed to be one of the largest-ever infrastructure arbitration awards, pertains to a dispute over transhipment of coal from the high seas for NTPC’s Farakka power plant.
NTPC had earlier signed a contract with Inland Water Authority of India (IWAI) and JITF for transportation of coal to its 2,100-MW power plant located at Farakka, West Bengal. The project, introduced for the first time in India, involved the movement of coal in deep draft locations like Sandheads and Kanika Sands from ocean going vessels to barges and transportation of such unloaded coal via National Waterway No.1 to Farakka