Reliance Power wins case in Indonesia
Reliance Power, the Anil D Ambani firm, on Tuesday said its arm has won a lawsuit in Indonesia that challenged the validity of a Singapore arbitration award favouring the company.
In a communication to the stock exchanges, the power generation and coal resources firm said that Reliance Power Netherlands BV, its wholly owned subsidiary, has won the lawsuit in the Central Jakarta district court in Indonesia.
Reliance Power added that Kokos Jiang and Prestige Capital Holdings, which were respondents in the arbitration, had filed a lawsuit in the Jakarta court requesting nullification of the entire arbitration award.
According to the Singapore arbitration award, the arbitrators had ordered Kokos Jiang (earlier known as Kokos Leo Lim) and Prestige Capital Holdings, Seychelles, to pay Reliance Power Netherlands BV $43.2 million along with default interest.
It added that the total dues payable by Kokos Jiang Prestige Capital Holdings stands at $68 million as on the day of the judgment. “With this judgment, Indonesian court has further reinforced the ongoing award execution process. Reliance Power is on track to execute the award for a sum of $68 million (Rs 510 crore) during 2020-21,’’ it disclosed.
Shares of Reliance Power on Tuesday ended at Rs 1.74, a fall of around 5 per cent over its previous closing price.
For the quarter ended March 31, 2020, Reliance Power had posted a consolidated loss of Rs 4,206.38 crore compared with a loss of Rs 3558.51 crore in the year ago period. Total income of the company during the period came in at Rs 1902 crore against Rs 1687.85 crore in the corresponding period of the previous year.
In September, Reliance Power had said that it has signed a joint venture deal with Japan’s JERA Co. Inc. to set up a 750 megawatt, gas-based power plant at Meghnaghat, Bangladesh. Reliance Power will hold 51 percent stake in the joint venture, while JERA will hold 49 percent stake. The deal was expected to reduce Reliance Power’s debt by Rs 835 crore, payable to US-Exim Bank.
Reliance Power had then said that it will relocate one module of its equipment from its power project at Samalkot, Andhra Pradesh, for Phase-I of the Bangladesh project.