Dilip Buildcon Limited (DBL) has successfully reached an amicable settlement in the conciliation proceedings with DBL Bangalore Nidagatta Highways Private Limited (DBNHPL). The proceedings involved several claims under the EPC contract for the Six Laning of the Bangalore-Nidagatta Section, NH-275 in Karnataka, awarded through the Hybrid Annuity Mode.
The matter was referred to the National Highways Authority of India (NHAI), which, in turn, sent it to the Conciliation Committee of Independent Experts (CCIE) for resolution. Following the conciliation process, a settlement agreement was formalized, addressing the following disputes:
- Damages arising from delays in the provision of the Right of Way (ROW).
- Compensation for additional costs incurred due to the extended stay during construction and after the issuance of the Provisional Completion Certificate (PCC).
- Compensation for Change-In-Law.
- Release of withheld Goods and Services Tax (GST).
- Restoration of annuity and interest related to only the PCC length.
- Compensation for price escalation for work executed from the PCC stage to final completion.
- Payment of additional Interest During Construction.
As per the agreement, DBNHPL and NHAI settled the claims for a total amount of ₹98.30 crores, with ₹91.25 crores allocated to DBL’s claims. NHAI is required to disburse the agreed amount to DBNHPL within 30 days, marking the full and final settlement of the claims.
