HCC to get 75% arbitral award amount Rs 2000cr, shares spike 15%

Hindustan Construction Company (HCC) shares surged 15.5 percent in early trade Thursday after the company received confirmation of arbitral award amount from government companies.
  • Language
  • App
  • Subscriptions
  • Specials
  • Sign-In
  • Register
GeStepAhead GrowMyMoney master your money IThe Winning Leap SME Special
Moneycontrol

Home » News » Buzzing Stocks

Dec 01, 2016, 06.30 PM | Source: Moneycontrol.com

HCC to get 75% arbitral award amount Rs 2000cr, shares spike 15%

Hindustan Construction Company (HCC) shares surged 15.5 percent in early trade Thursday after the company received confirmation of arbitral award amount from government companies.

Like this story, share it with millions of investors on M3

HCC to get 75% arbitral award amount Rs 2000cr, shares spike 15%

Hindustan Construction Company (HCC) shares surged 15.5 percent in early trade Thursday after the company received confirmation of arbitral award amount from government companies.

Post Your Comments

Share Cancel

| 11 Comments
Moneycontrol Bureau

Hindustan Construction Company (HCC) shares surged 15.5 percent in early trade Thursday after the company received confirmation of arbitral award amount from government companies.

"HCC has received communication from NHPC and NHAI regarding arbitral award payment. This communication clears the way for HCC for receiving close to Rs 2,000 crore within 4 to 6 weeks," the Mumbai-based construction company said in its filing.

NITI Ayog has given the SOP (standard operating procedures) for release of payment for timely implementation. HCC has been asked to reconcile the award amount within 7 days and thereafter open escrow account and submit bank guarantees within 30 days for recovering the amount.

This communication came in the backdrop of the government setting into motion the process to release 75 percent of arbitration amounts against margin free guarantee in situations where awards have been given but have been contested by the concerned authorities.

In September 2016, the cabinet committee on economic affairs chaired by Prime Minister Narendra Modi had cleared several measures proposed by NITI Ayog to revive the construction sector such as easier norms for faster settlement of disputes between contractors and government departments, and partial deposit of funds by government agencies in form of arbitration awards.

As of September 2016, HCC has arbitration awards for Rs 3,427 crore.

Further claims worth around Rs 4,173 crore are in arbitration process, the company said, adding about 70 percent of these cases were at initial stage of arbitration process and the company has already given consent to transfer these cases under new arbitration act, which mandates decision within 12 months.

At 09:22 hours IST, the stock was quoting at Rs 38.30, up Rs 4.10, or 11.99 percent on the BSE.

Posted by Sunil Shankar Matkar

Buy, Hold, Sell ? Hear it first on M3
HCC to get 75% arbitral award amount Rs 2000cr, shares spike 15%

See all

Get started using your favorite social network

or

Login using moneycontrol ID

Username
Password

Need help logging in? Reset password.

Don´t have an account? Sign Up

Get started using your favorite social network

or

Simply sign up using this short form

* mandatory

UserName*

Username should be atleast 4 character

Password*

Password should be 8 or more characters,
atleast 1 number, 1 symbol & 1 upper case letter

Alert

Your Password should contain
  • 8 or more characters
  • At least 1 number
  • At least 1 symbol
  • At least 1 upper case letter
Confirm Password*
Email
Already have an account? Login