GR Infraprojects Limited has secured a favorable arbitration award of Rs 106.45 crore, including interest up to March 25, 2024, in connection with its highway development project in Bihar. The award was granted by an arbitral tribunal in a long-standing contractual dispute between the company and a state government agency related to project delays and unpaid dues.
The arbitration tribunal acknowledged GR Infraprojects’ claims, including the principal amount and applicable interest, under the dispute resolution framework outlined in the original agreement. This legal victory not only enhances the company’s balance sheet strength but also reinforces confidence in contract enforcement in the infrastructure sector.
According to the company’s regulatory filing, GR Infraprojects is now initiating steps to realize the awarded amount. The company had earlier disclosed the arbitration under contingent liabilities and has now updated its status to reflect the award.
This development is expected to be a financial and sentiment booster for the infrastructure player, especially at a time when the sector is dealing with elevated raw material costs and execution challenges. Analysts believe this will improve the company’s cash flows and lend greater visibility to upcoming quarters.
Shares of GR Infraprojects are expected to remain in focus following this positive development.