Arbitral award winners HCC & Patel Engineering closed up 20 % each

One of the biggest beneficiary of government fast tracking of Arbitral awards have been infrastructure majors like HCC and Patel Engineering which have seen huge amount of money being stuck at the hands of dispute between the contractor and government.

NITI Aayog has given the SOP (standard operating procedures) for release of payment for timely implementation of infrastructure projects in the country which have been stuck due to fund requirement.

In a statement released to exchanges, "HCC has received communication from NHPC and NHAI regarding arbitral award payment. This communication clears the way for HCC for receiving close to Rs 2,000 crore within 4 to 6 weeks’’.

HCC has been asked to reconcile the award amount within 7 days and thereafter open escrow account and submit bank guarantees within 30 days for recovering the amount.

Reacting to this development HCC soared in trade as it closed in upper circuit, up 20 per cent at Rs 40.90 on NSE.
Anticipating similar communication from the government shares of Patel Engineering to spiked up in trade with shares only finding buyers. Stock closed at Rs 85.60 on NSE, up 20 per cent.

Funds received will help the company to pare down its debt and improve working capital requirement.