NHPC Tribunal Awards INR 392B in Arbitration

Nikunj Parikh - Mumbai Bureau Sep 03, 2026 2,200 Views

NHPC Limited announced that an Arbitral Tribunal awarded INR 3,92,31,46,740 and Euro 15,36,530 to M/s BGS-SGS-SOMA regarding the Subansiri Lower HE project. Disclosed under SEBI regulations, the payout is recoverable through tariffs under CERC guidelines, safeguarding long-term project cost structures.

FARIDABAD — On September 2, 2026, state-owned hydro power generator NHPC Limited announced that an Arbitral Tribunal pronounced an arbitral award on September 1, 2026, concerning a high-value arbitration matter between M/s BGS-SGS-SOMA and NHPC Limited. The litigation stems from construction works executed for the 2000 MW Subansiri Lower Hydroelectric Project. While the claimant had sought substantial sums involving multiple currencies, the tribunal awarded a combined principal and interest amount totaling INR 3,92,31,46,740 plus Euro 15,36,530. The disclosure provides timely clarity for stakeholders tracking legal liabilities and capital expenditures associated with India's major hydroelectric infrastructure developments.

Arbitration Details and Tribunal Award Breakdown

The legal proceedings involve contracts for the construction of diversion tunnels, coffer dams, a concrete gravity dam, a plunge pool, and a cut-off wall designated as Lot SSL-1 for the Subansiri Lower HE project. M/s BGS-SGS-SOMA originally filed claims amounting to INR 7,96,86,70,978 alongside Euro 28,76,497.44.

Following the review, the Arbitral Tribunal delivered its award on September 1, 2026, granting the claimants a sum comprising the principal amount plus interest calculated at 10% from September 9, 2021, to August 31, 2026. The final payout mandated by the tribunal stands at INR 3,92,31,46,740 and Euro 15,36,530. NHPC Limited noted that under the prevailing CERC Tariff Regulations, 2024, these arbitral expenses and financial implications are allowable as project costs and remain recoverable through future tariffs.

Regulatory Disclosures and Compliance Framework

The official communication was issued pursuant to Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. Company Secretary Rupa Deb submitted the filing to both BSE Limited and the National Stock Exchange of India Limited on September 2, 2026, following up on earlier corporate disclosures dated August 14, 2023. The structured reporting standard ensures that institutional investors and retail shareholders receive accurate updates regarding material litigation and tribunal outcomes.

Impact on Investors, Consumers, and Markets

For investors and financial markets, the resolution of legacy arbitration cases removes prolonged uncertainty regarding contingent liabilities for public sector undertakings. Because the awarded sum qualifies as a recoverable project cost under CERC Tariff Regulations, 2024, the direct financial shock to the enterprise is mitigated, ensuring that project asset values and long-term utility pricing frameworks remain stable.

Official Sources Section

NHPC Limited Stock Exchange Disclosure: Official regulatory filings submitted to BSE Limited and the National Stock Exchange of India Limited under Regulation 30 of the SEBI (LODR) Regulations, 2015, executed by Company Secretary Rupa Deb on September 2, 2026.

Quote Section

"According to officials, the Arbitral Tribunal (AT) has pronounced arbitral award on 01.09.2026 in the arbitration matter between M/s BGS-SGS-SOMA and NHPC Limited, awarding a grand total of INR 3,92,31,46,740/- plus Euro 15,36,530/- which is allowable as project cost and recoverable through tariff under CERC Tariff Regulations, 2024."

Why It Matters

The tribunal's ruling brings legal closure to a major multi-year infrastructure dispute. By confirming that the awarded compensation is recoverable through tariffs, the update shields operational margins and reinforces predictable cost recovery mechanisms for large-scale power generation projects.

Key Facts at a Glance

Entity Involved: NHPC Limited and M/s BGS-SGS-SOMA
Project Affected: Subansiri Lower HE Project (2000 MW, Lot SSL-1)
Tribunal Award Date: September 1, 2026
Award Amount: INR 3,92,31,46,740 plus Euro 15,36,530 (including interest @10%)
Regulatory Provision: Recoverable through tariff under CERC Tariff Regulations, 2024

Frequently Asked Questions

What was the total amount claimed versus the amount awarded by the tribunal? The claimant sought INR 7,96,86,70,978 and Euro 28,76,497.44, whereas the Arbitral Tribunal awarded a total of INR 3,92,31,46,740 plus Euro 15,36,530.

Which project is tied to this arbitration case? The dispute pertains to the construction work of diversion tunnels, coffer dams, and concrete gravity dams for the 2000 MW Subansiri Lower HE Project.

Are these arbitral costs recoverable for NHPC Limited? Yes, NHPC Limited stated that the award is allowable as a project cost and is recoverable through tariffs under the CERC Tariff Regulations, 2024.