On August 30, 2024, GE Power India Limited (GEPIL) announced a settlement agreement with Shiga Energy Private Limited, resolving a long-standing dispute over tax refunds related to their 2010 contract for the Tashiding Hydro Electric Project in Sikkim.

Key points of the settlement:

  1. Shiga Energy will pay GEPIL INR 4.7 crore (47 million rupees) as a full and final settlement.
  2. The dispute originated from disagreements over Shiga Energy’s obligation to refund taxes, duties, and levies on bought-out products.
  3. This settlement pertains to GEPIL’s Hydro Business, which shareholders approved for sale on a slump sale basis on August 14, 2024.
  4. GEPIL states that the settlement will have no impact on its financial position due to the pending sale of the Hydro Business.
  5. The transaction is not considered a related party transaction.

GEPIL disclosed this information in compliance with SEBI regulations, notifying both the National Stock Exchange of India (Symbol: GEPIL) and BSE Ltd. (Scrip Code: 532309).

The settlement marks the end of legal proceedings between the two companies and demonstrates their willingness to resolve disputes amicably, even as GEPIL prepares to divest its Hydro Business.

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