HCC jumps 20% on arbitral award of Rs 2,000 cr from NHPC, NHAI

HCC jumps 20% on arbitral award of Rs 2,000 cr from NHPC, NHAI

New Delhi, Dec 1 (PTI) Shares of Hindustan Construction
Company (HCC) today surged nearly 20 per cent after the
infrastructure major said it will receive arbitral award
payment of around Rs 2,000 crore from NHPC and NHAI Ltd.
The shares of the company opened on a bullish note at Rs
37.50, then jumped 19.88 per cent to touch an early high of Rs
41 on BSE.
Similar movement was seen on NSE as well, where the stock
opened at Rs 37.55, then surged 19.94 per cent to an early
high of Rs 40.90.
“NITI Aayog has given the SOP (Standard Operating
Procedures) for release of payment for timely implementation.
HCC has been asked to reconcile the award amount within 7 days
and thereafter open escrow account and submit bank guarantees
(BGs) within 30 days for recovering the amount.
“This communication clears the way for HCC for receiving
close to Rs 2,000 crore within 4 to 6 weeks,” a company
release said yesterday.
The communication came in the backdrop of the government
setting into motion the process to release 75 per cent of
arbitration amounts against margin free guarantee in
situations where awards have been given but have been
contested by the concerned authorities.
The uptick in the counter assumes significance as the
broader market was trading in the negative territory. PTI DRR