Gayatri Projects announced that it has successfullv monetized and received Rs 208 crore net of statutory deductions (Gross Rs 219 crore) under the GoI scheme of monetisation of 'under litigation arbitral award' against bank guarantees.
The company along with its JV partner had been awarded an arbitration claim worth Rs 703 crore including interests for its road project in Nagaland and GPL portion in the same was Rs 264 crore.
The company has now received 75% of the claim (including further interest of Rs 27.74 crs for the period from the date of award till the date of payment) after furnishing bank guarantees of similar amount. This inflow is in line with company's guidance of an inflow of Rs 2-3 billion under the GOI.
As per GPL's stated strategy, this money will be used towards repayment of term loans.
Post the use of these proceeds, GPL's long-term debt would reduce by 27% from Rs 764 crore in H1FY21 to Rs 556 crore. This is the first in a series of award monetization's company expects to receive under the various settlement schemes of GoI. The company remains committed towards balance sheet strengthening and reduction of long-term debt to a negligible amount award monetisation scheme / conciliation scheme.
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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)
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