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Patel Engg bags Rs 2,500-crore arbitration award

The company's total standalone debt as on March 31, 2016 stood at nearly Rs 4,535 cr

Press Trust of India  |  New Delhi 

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Patel Engineering bags Rs 2,500 crore arbitration award

Construction company Patel Engineering has won arbitration awards of over Rs 2,500-crore and expects its debt to halve on Cabinet's decision to revive construction sector. The company's total standalone debt as on March 31, 2016 stood at nearly Rs 4,535 crore. Further, claims approximating to Rs 5,000 crore are in the arbitration process and are expected to be monetised within next 12 to 18 months based on the Cabinet decision, it said adding the same will be utilised to reduce the debt even further.

Managing Director, Patel Engineering, Rupen Patel, said, “The Cabinet's decision on payment of arbitration awards to infrastructure companies will support construction companies to infuse liquidity into the stressed and help create more jobs.”

He said, “We will shortly be able to reduce the debt by 55-60 per cent and even further within the next 12-18 months. This additional liquidity with the help the company to strengthen its balance sheet and enable to participate in large infrastructure projects.”

Patel Engineering is an integrated construction company specialising in hydro-power generation, irrigation and urban infrastructure projects. It has executed projects across Arabian Gulf, Sri Lanka, Nepal and Bhutan. Seeking to revive construction and real estate sectors, the Cabinet on August 31, approved an array of measures including easing of rules for quicker settlement of disputes, pump in liquidity and reinvigorate stalled projects.

It allows transfer of cases initiated under the old Arbitration Act to the new and expeditious dispute resolution law, approved release of 75 per cent of the amount in dispute against bank guarantee.

First Published: Sat, September 03 2016. 00:42 IST