RCF's contractor to pay Rs 173.72 crore for breakdown of two GTGs

Rashtriya Chemicals and Fertilizer (RCF) on Tuesday said it has won an arbitration award of Rs 173.72 crore from one of its contractors for the breakdown of two gas turbo generators (GTGs).

The award was handed over by a single-member arbitral court which directed the contractor whose name was withheld by the company in an exchange filing.

The contractor was also asked to repair and reinstate both the GTGs at the company's plant at their own cost under the defect liability clause.

The arbitrator has also allowed RCF's claim for additional expenditure incurred on power and directed the contractor to pay Rs 173.72 crores with interest 10 per cent from the date of claim and a sum of Rs 95 lakhs as arbitration cost to the company.