NHPC Ltd. has disclosed that an Arbitral Tribunal has pronounced its award concerning the major dispute with HCC related to the Kishanganga HE Project. The award was issued on February 21, 2026, in favor of HCC. The claim involved substantial monetary relief, while NHPC had filed counter-claims amounting to ₹738.67 Crore. The Tribunal’s award is currently under examination by NHPC, and arguments on NHPC’s counter-claims are scheduled to commence shortly.
Disclosure on Material Arbitration Case Status
NHPC Ltd., a Government of India Navratna Enterprise, has issued a formal disclosure regarding the status of a material litigation case currently under arbitration. This concerns the dispute with HCC over the Kishanganga Hydro Electric (HE) Project.
Arbitral Award Details
The key development is that the Arbitral Tribunal has pronounced its final award on February 21, 2026. The award was pronounced in favor of M/s HCC (the Claimant/Counterparty).
Claims by HCC (Claimant)
The claims raised by HCC related to several significant financial components arising from the construction of Civil Works for the Kishanganga HE Project. These claims covered:
- Release/refund of encashment of Performance Bank Guarantee (PBG) & Retention Money BG.
- Nine miscellaneous claims, including those related to changes in Legislation (WCT, Toll Tax, VAT, GST, CST, Customs Duty), Price Adjustment, and Cost Towards Depositing Tax Demand Amount raised by J&K Tax Authorities on NHPC from encased BGs money.
- Cost of additional execution beyond the original scope of the Contract.
The total awarded amount claimed by HCC was substantial, comprising Rs 227.82 Crore plus EUR 26,66,029, along with pre-reference and pendentelite interest at 10.40% p.a. Additionally, HCC was awarded Arbitration Cost of Rs 1.57 Crore and USD 10,000, plus future interest at 12.40% p.a.
NHPC’s Position and Next Steps
The actual monetary liability of NHPC from this award is currently under review, as the Arbitral Tribunal award is under examination by the company.
It is noted that NHPC had filed Counter-Claims (CC) against HCC amounting to ₹738.67 Crore. Arguments pertaining to these Counter-Claims are scheduled to commence shortly.
Compliance Status
This information is being provided to ensure compliance with ongoing disclosure requirements following the pronouncement of the award by the Arbitral Tribunal.
Source: BSE
