Introduction:
GMR Hyderabad Vijayawada Expressways (GHVEPL), a subsidiary of GMR Power & Urban Infra, has successfully resolved a longstanding dispute with the National Highways Authority of India (NHAI). The dispute stemmed from a Concession Agreement signed in October 2009, under which GHVEPL was responsible for constructing, operating, and maintaining a 181.50 km two-lane stretch of NH-65 between Hyderabad and Vijayawada.
The issue arose due to significant revenue loss following the bifurcation of the stretch between Telangana and Andhra Pradesh after the project’s commissioning. GHVEPL sought compensation from NHAI under the agreement, citing changes in the law.
Resolving Disputes and Securing Compensation: GHVEPL’s Milestone Settlement with NHAI:
In a mutually agreed settlement, NHAI has agreed to pay GHVEPL Rs. 1,387.21 crore in compensation. The payment will be made in two tranches, with the first tranche of Rs. 850 crore already received by GHVEPL. This amount will primarily go towards repaying loans to the consortium of lenders.
The remaining Rs. 537.21 crore, part of the second tranche, will be received on July 1, 2024, which marks the project’s handover date back to NHAI.
GHVEPL plans to utilize the second tranche amount to further reduce corporate debt within GMR Power & Urban Infra Limited (GPUIL) and invest in the growth of its other business ventures.
Conclusion:
This settlement marks a significant step towards resolving legal complexities and ensuring financial stability for both GHVEPL and NHAI, paving the way for smoother operations and future developments in the infrastructure sector.
Frequently Asked Questions FAQs:
1. What is GHVEPL?
GHVEPL stands for GMR Hyderabad Vijayawada Expressways Private Limited. It is a subsidiary of GMR Power & Urban Infra Limited, involved in the construction, operation, and maintenance of infrastructure projects, particularly highways.
2. What was the dispute between GHVEPL and NHAI about?
The dispute arose from a Concession Agreement signed in 2009 for the construction and operation of a two-lane highway stretch between Hyderabad and Vijayawada. GHVEPL claimed compensation from NHAI due to revenue loss following the bifurcation of the stretch between Telangana and Andhra Pradesh.
3. How much compensation is NHAI paying to GHVEPL?
NHAI has agreed to pay Rs. 1,387.21 crore to GHVEPL as compensation. This amount is being disbursed in two tranches, with the first tranche of Rs. 850 crore already received by GHVEPL.
4. How will GHVEPL use the compensation received?
The first tranche of Rs. 850 crore will primarily be used to repay loans to GHVEPL’s consortium of lenders. The remaining Rs. 537.21 crore, part of the second tranche, will be received on July 1, 2024, and will be utilized for further reducing corporate debt within GMR Power & Urban Infra Limited and investing in other business ventures.
5. When will the project be handed back to NHAI?
The project is scheduled to be handed back to NHAI on July 1, 2024, which is the agreed-upon Handover Date as per the settlement between GHVEPL and NHAI.
6. What are the implications of this settlement?
This settlement resolves long-standing legal issues between GHVEPL and NHAI, ensuring financial stability for both parties. It also paves the way for smoother operations and potential future collaborations in the infrastructure sector.
7. How does this settlement impact GMR Power & Urban Infra Limited (GPUIL)?
The settlement allows GPUIL to reduce its corporate debt significantly and provides funds for investment in its other business ventures, contributing to overall growth and stability.
8. Where can I get more information about GHVEPL and its projects?
For more detailed information about GHVEPL and its projects, you can visit their official website or contact their corporate offices directly.
These FAQs provide a concise overview of the key aspects related to the settlement between GHVEPL and NHAI, addressing common inquiries regarding the dispute, compensation, project handover, and implications for GMR Power & Urban Infra Limited.
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