GE Power India Limited (GEPIL) has reached a settlement agreement with Navayuga Engineering Company Limited (NECL) to resolve an ongoing arbitration dispute. The settlement, announced today, will see NECL pay GEPIL a total of ₹31.45 crore over the next two years.
The shares of GE Power India Limited (GEPIL) were trading at ₹426.80 up by ₹1.75 or 0.41 per cent on the NSE today at 12 noon.
The dispute, which began in 2020, stems from an E&M Turnkey Contract between the two companies. Under the agreement, NECL will make quarterly installments, with the final payment due in 2026.
GEPIL stated that the financial impact of the settlement would be accounted for in accordance with the Business Transfer Agreement related to the sale of its hydro business undertaking to GE Power Electronics (India) Private Limited.
The company confirmed that this transaction does not fall under related party transactions. The settlement marks the end of a four-year legal proceeding between the two firms.
Also read: GE Power India posts net profit of ₹26 crore in Q4 on higher revenue
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Published on September 3, 2024
https://www.thehindubusinessline.com/markets/ge-power-india-settles-dispute-with-navayuga-to-receive-3145-crore/article68599903.ece
