NHPC Limited: Arbitral Tribunal Awards ₹392 Crore + Euro 15 Lakhs in BGS-SGS-SOMA Case
NHPC Limited received an arbitral award on September 1, 2026, in a dispute with M/s BGS-SGS-SOMA. The award is for INR 392.31 crore and Euro 15.36 lakhs, related to the Subansiri Lower HE project. This amount is recoverable through tariff as per CERC regulations.
The award amount is substantial, and while it is recoverable, it represents a significant financial event for the company. The recovery mechanism through tariff provides some comfort, but the initial outflow and potential impact on project financing warrant a medium impact assessment.
The arbitration award is a significant financial event, but the neutral sentiment is assigned because the awarded amount is allowable as project cost and recoverable through tariff as per regulations, mitigating a direct negative financial impact.
NHPC Limited has disclosed an arbitral award pronounced on September 1, 2026, in a case involving M/s BGS-SGS-SOMA. The Arbitral Tribunal awarded an amount of INR 3,92,31,46,740/- plus Euro 15,36,530/-
This award pertains to the construction of diversion tunnels, coffer dams, concrete gravity dam, plunge pool, and cut-off Wall (Lot SSL-1) for the Subansiri Lower HE project (2000 MW). The original claimed amount by NHPC was INR 7,96,86,70,978/- plus Euro 28,76,497.44/-
NHPC further informed that as per the CERC Tariff Regulations, 2024, the awarded amount is allowable as a project cost and is recoverable through tariff.
A plain-language summary of a public exchange filing by NHPC Limited. Read the original for the full detail.