Jindal SAW Faces Mixed Outcome in NTPC Arbitration Case

Jindal SAW's subsidiary Jindal ITF secured a landmark ₹2,015 crore arbitration award against NTPC in 2019 for breach of a coal transport agreement, but the Delhi High Court recently allowed NTPC’s petition challenging the award. The tribunal had ruled NTPC unlawfully terminated a 2013 pact for inland waterway coal transport to Farakka plant, citing delays in land handover and failure to meet minimum quantity commitments. However, the High Court directed Jindal ITF to furnish a ₹500 crore bank guarantee while the appeal is pending. The case highlights complexities in infrastructure disputes, with NTPC citing reduced coal imports as justification for termination.

Source: Delhi High Court Order (O.M.P. COMM 204/2019) & Jindal SAW Regulatory Filing, February 3, 2025