Goa loses arbitration award appeal against Reliance Infra

Panaji, Sep 12 (IANS) A court here on Thursday ruled against the Goa government in an appeal challenging an arbitration award in favour of Reliance Infrastructure Ltd over a power purchase dispute, directing the state to pay the company Rs 292 crore plus interest.

Principle District and Sessions Judge Irshad Agha was hearing a petition filed by Reliance Infrastructure, which sought speedy disbursement of dues awarded to it in an arbitration award which was granted in February last year, by a Joint Electricity Regulatory Commission Tribunal.

Speaking to reporters, Goa Advocate General Devidas Pangam said that it was up to the state government to decide on whether to appeal agianst the order.

"Our contentions and objections were rejected by the honourable Court. However, the court also granted a stay of six weeks for the government to allow us to appeal in the High Court... It is for the government to take a decision on it," he said.

Last year, Reliance Infrastructure Ltd had won the Rs 292 crore arbitration award, after the Goa government had raised objections to the bills raised by the private company for supply of power to the state government, via its subsidiary Reliance Salgaocar Power Ltd, a private power supply firm which was operating in the state.

Following the Goa court's order, the state government now owes Reliance Infrastructure Limited Rs 359 crore, along with interest, in dues.

When Reliance Salgaocar Power Company shut down, the firm had transferred several megawatts of power to the state government-run grid, and a dispute had arisen between the two parties over payment towards the supply of power.

The RSPC and the Goa government had signed a power purchase agreement in 1998.

While the Goa government had claimed that the power supply bill raised by Reliance Infrastructure Ltd was unreasonably high, the private firm had insisted that the dues owed were as per norms.