NHPC Directed to Pay Compensation in Kishanganga Project Arbitration

NHPC Limited, India’s leading hydropower utility, has received an arbitral tribunal award concerning the Kishanganga hydroelectric project in Jammu & Kashmir. The tribunal ruled in favor of Hindustan Construction Company (HCC), citing delays in project execution and granting financial and timeline relief.

Key Highlights

• Project Background: Kishanganga is a 330 MW hydroelectric project located on the Kishanganga River in Jammu & Kashmir.
• Tribunal Decision: The arbitral award dated October 14, 2019, held NHPC responsible for delays in turnkey execution.
• Compensation: HCC was awarded ₹163.55 crore along with applicable interest.
• Extension Granted: The tribunal allowed an extension of 514 days for project completion.
• Legal Proceedings: The Delhi High Court later addressed applications related to the release of awarded amounts, reinforcing the tribunal’s decision.

Sources: Delhi High Court judgment (NHPC vs HCC, 2020) via CaseMine