INSUBCONTINENT EXCLUSIVE:
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
said.
The final award was announced by a three-member Arbitral Tribunal, consisting of Justice Vikramajit Sen (Retd), Justice B P Singh
(Retd) and Justice Anil Kumar (Retd) on January 27, 2019.
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.
The Arbitral Tribunal after hearing both sides and reviewing
documents and evidence, held that NTPC has contributed majorly toward the delay in the construction of Phase I and Phase II of the project
NTPC had allegedly failed to provide the required land for setting up the coal handling system
Due to the delay, JITF could not complete the Phase I and Phase II on time and, therefore, was found liable to compensate JITF.
The tribunal
awarded the minimum guaranteed amount for the entire period of the agreement, amounting to Rs 2,015 crore plus interest and applicable
Singh, partner.
While arbitral proceedings were in place, Singh Associates (on behalf of JITF) filed two interim applications seeking
payment of the minimum guarantee quota or MGQ amount of Rs 158.5 crore and Rs 197.81 crore for the first and second year of the operations
period, arguing that NTPC had failed to provide the minimum guaranteed coal to JITF at transfer points (deep draft locations in mid-sea)
The Arbitral Tribunal also allowed interim applications filed by JITF and directed NTPC to pay the MGQ amount, said Pahwa.
