JAKARTA (TheInsiderStories) – Reliance Power Netherlands BV, a wholly owned subsidiary of Indian power producer Reliance Power Ltd., has won an international arbitration award of US$56 Million against Prestige Capital Holdings Ltd, a Seychelles based Company and Kokos Jiang, the owner of Sugico Group in Indonesia.
The contractual dispute is in relation to issues faced over starting operations in three coal mining concessions in Indonesia that Reliance Power had acquired in 2010
Reliance Power had acquired the entire economic interest in three coal mining concessions owned by Sugico Group in 2010. These mining concessions have total coal resources of around 1.5 billion tonnes of coal with potential to produce up to 30 million tonnes of coal per annum.
The Arbitration Tribunal constituted under Singapore International Arbitration Centre in its award on Aug. 21, 2018, has ordered the both parties jointly and severally to pay the charged to Reliance Power Netherlands BV.
Most of these overseas investments by power firms ran into rough weather owing to fall in coal prices, change in Indonesia coal import policy, environmental issues, and other problems.
Reliance Power is private sector power generation and coal resources company. The company has one of the largest portfolio of power projects in the private sector, based on coal, gas, hydro and renewable energy, with an operating portfolio of 5,945 megawatts.
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