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

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

The judgment was delivered by a single-member arbitration tribunal and directed the contractor whose name was withheld by the company in the stock exchange file.

The contractor was also required to repair and return each of the GTGs at the company’s factory at its own expense under a liability for defects clause.

The arbitrator also allowed RCF’s claim for additional expenditure incurred on power and ordered the contractor to pay Rs 173.72 crore at 10 per cent interest from the date of claim and Rs 95 as arbitration costs to the Company.

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First published: Jun 06 2023 | 11:43 p.m ist