Reliance Power said it has been awarded damages of $56 Million, or about Rs 390 cr, by an arbitration panel in Singapore in relation to the acquisition of three mines in Indonesia.
Reliance Power, an Anil Ambani Group company, had signed an agreement with Indonesia’s Sugico Group eight years ago to acquire three coal mines.
Reliance Power’s wholly-owned subsidiary, Reliance Coal Resources, was to make an upfront payment of Rs 500 crore ($106 million) for acquiring the mines.
The arbitration panel, set up under Singapore International Arbitration Centre (SIAC) rules, asked Seychelles-based Prestige Capital Holdings Ltd and Mr Kokos Jiang, the owner of Sugico Group in Indonesia, to make the payment.
The three mines have total coal resources of around 1.5 billion tonnes with potential to produce up to 30 million tonnes of coal per annum.
The coal was supposed to ensure steady supplies for the proposed Krishnapatnam Power Project in Andhra Pradesh.
Reliance Power Limited, a part of the Reliance Group, is India’s leading private sector power generation and coal resources company.
The company has an operating portfolio of 5,945 megawatts.