PSP Projects Wins ₹61 Crore Arbitration Award From Municipal Corporation
Overview
Construction firm PSP Projects Ltd announced a significant arbitration win against Bhiwandi Nizampur Municipal Corporation (BNCMC). The award directs BNCMC to pay PSP Projects ₹61.44 crore plus accrued interest within 60 days. Failure to comply will result in an 11% annual interest penalty, bolstering the firm's financial outlook.
Stocks Mentioned
Arbitration Award Boosts PSP Projects
PSP Projects Ltd announced Monday it secured a favorable arbitration award in its dispute with Bhiwandi Nizampur City Municipal Corporation (BNCMC). The Arbitral Tribunal delivered its decision on January 11, concluding the lengthy proceedings between the parties. This development provides a significant financial uplift for the construction firm.
The tribunal has mandated that BNCMC pay PSP Projects a principal sum of ₹61.44 crore. This amount is to be paid along with all accrued interest up to the date of the award, within a strict 60-day timeframe. This cash injection is expected to strengthen PSP Projects' balance sheet.
Should BNCMC fail to meet this payment deadline, it will face additional financial penalties. The corporation will be liable to pay interest at a rate of 11% per annum. This interest will be calculated on the total awarded sum, including accrued interest, from the date of the award until the payment is fully settled.
Company Operations
PSP Projects specializes in undertaking diverse construction projects, encompassing industrial, institutional, residential, and luxury developments. The company has a notable track record, including landmark projects such as the Surat Diamond Bourse. This award reinforces confidence in the company's project execution and dispute resolution capabilities.
Shares of PSP Projects Limited closed at ₹835 on January 12, marking a slight increase of ₹1.90, or 0.23%, on the Bombay Stock Exchange (BSE). The company has recently secured other significant orders, further signaling its ongoing growth trajectory.
