Arbitral award winner - Patel Engineering surges 10 %

One of the biggest beneficiary of government's fast tracking of Arbitral awards have been infrastructure companies and one of the major ones has been Patel Engineering, which has 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.

Recently few of the infrastructure companies have received communication from NHAI for the arbitral award payment, which is significantly expected to boost cash flow situation of infrastructure majors.

Infrastructure companies have been asked to open an escrow account and submit bank guarantees within 30 days for recovering the amount.

Funds received will help the company to pare down its debt and improve working capital requirement, which in turn will mobilise the stuck project and boost execution capabilities of the companies..

Reacting to this development, shares of Patel Engineering have soared more than 25 per cent in the last five trading sessions. Currently the shares are trading at Rs 89.95, up close to 10 per cent on NSE.