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Time of India
a day ago
- Business
- Time of India
Tata Power plans to contest Rs 4k-cr Singapore arbitral order
MUMBAI: Tata Power, the utility arm of the Tata Group, plans to contest the $490 million (Rs 4,200 crore) verdict handed down by the Singapore arbitral tribunal. The ruling stems from alleged breaches of confidentiality agreements with investment firm Kleros Capital Partners concerning a potential coal mining project in Russia. At Tata Power's annual shareholder meeting on Friday, chairman N Chandrasekaran said: "The company is reviewing the contents of the July 1 arbitration award and is discussing with lawyers. It will look at all options, including challenging the decision." He emphasised, "This is top of the agenda." The Singapore International Arbitration Centre granted Kleros a monetary award totalling more than $618 million. This included $490 million in damages, alongside interest payments exceeding $120 million (calculated at 5.33% from Nov 30, 2020 - when the lawsuit commenced - until payment settlement), and $8 million in legal costs with interest (at 5.33% from July 1, 2025--when the verdict was issued-until final payment). Tata Power has not accounted for any provisions in its financial accounts in relation to the arbitral award. Since July 1, Tata Power stock has lost nearly 1.5%. On Friday, the stock on BSE closed at Rs 401. The Singapore arbitral tribunal held that Tata Power breached certain clauses of the non-disclosure agreements it had entered. However, in its FY25 report, the Indian company maintained that Kleros's case was an afterthought and therefore lacked merit. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Is your tinnitus getting worse? Do this immediately (Watch) Hearing Magazine Undo Also, Kleros failed to substantiate its project value claims concerning loss of opportunity and compensation negotiations. Consequently, Tata Power believed its position was strong and deemed it unnecessary to make provisions concerning the arbitration ruling, the FY25 report showed. In another dispute, Adaro International (Singapore) has sought damages of $106 million from Tata Power for alleged contractual breaches. Tata Power, in turn, has filed a counterclaim for $229 million for losses suffered due to non-supply of coal by Adaro. According to its FY25 report, Tata Power entered into a coal supply agreement with Adaro for its Trombay, Mumbai power plant, which required it to procure a certain quantity of coal annually. Both parties have initiated arbitration proceedings. Responding to shareholders' questions regarding ongoing litigation cases, Chandrasekaran said: "With regard to the other arbitration case, the company believes that it should definitely challenge that. That is something that is waiting for resolution." The company currently imports 15 million tonnes of coal yearly for its domestic thermal power operations. Interestingly, Tata Power is reassessing its thermal power strategy, four years after deciding to focus on green energy instead of expanding thermal power. Chandrasekaran said: "The company had declared that it will not expand in coal-based energy. However, this decision is being reviewed by the board due to the increasing demand for electricity in the country. The country may not be able to switch off all coal projects in the near future. It may take longer because the country's net zero target is 2070 whereas the company's target is 2045. So to meet the immediate demands of the industry, should there be a need to look at participation in additional coal-based projects is something that the board constantly looks at. " He indicated that the company has no intentions to convert its coal-based power plants to gas-based plants. "Our coal plants will be coming to the end of their life in the next 10 to 15 years. After that, we will slowly replace them with renewables". Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Business Standard
3 days ago
- Business
- Business Standard
Tata Power dips after arbitration tribunal partially rules in favour of Kleros
Tata Power fell 1.53% to Rs 400.25 after the company disclosed that an international arbitration tribunal has partially ruled in favour of Kleros Capital Partners in an ongoing dispute. The arbitration, conducted under the Singapore International Arbitration Centre (SIAC) rules, stems from claims made by Kleros that Tata Power breached confidentiality and non-circumvention clauses outlined in a Non-Disclosure Agreement. The NDA was signed as part of discussions for a potential coal mining partnership in Russia. In a stock exchange filing dated 2 July 2025, Tata Power informed investors that the three-member tribunal, by a majority of two to one, has awarded Kleros damages amounting to $490.32 million, along with simple interest at the rate of 5.33% from 30 November 2020, until payment is made. Additionally, the tribunal awarded Kleros a further $8.29 million as legal costs, also carrying simple interest of 5.33% from 1 July 2025, until paid. The arbitration proceedings were initiated by Kleros in November 2020, and oral hearings concluded in February 2024. The award was received by Tata Power after business hours on 1 July 2025. Tata Power has stated that it is currently reviewing the contents of the award and evaluating all available legal options, including a possible challenge to the decision. Tata Power Company is a leading integrated power company. Its consolidated net profit jumped 16.49% to Rs 1,042.83 crore on a 7.88% increase in revenue from operations to Rs 17,095.88 crore in Q4 FY25 over Q4 FY24.
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Business Standard
3 days ago
- Business
- Business Standard
Tata Power shares fall 2% on $490-million arbitration ruling against Co
Tata Power shares witnessed a drop of over 2.4 per cent to hit an intraday low of ₹396.60 per share on Thursday. The drop in the Tata Group company's share price came after it was directed by an arbitration tribunal to pay over $490 million in damages to Kleros Capital Partners. At 11:00 am, Tata Power shares were trading at ₹400.7 per share, down by 1.4 per cent on the National Stock Exchange. In comparison, the Nifty50 was trading in green, up by 95 points or 0.37 per cent at 25,549. So far this year, the shares of Tata group's power arm have remained largely range-bound, witnessing a mere single digit rise of over 3 per cent. On an annual basis, Tata Power Shares have struggled to trade in green, experiencing a decline of 7.9 per cent on the NSE. Currently, Tata Power shares are down by more than 19 per cent from the 52-week high level of ₹494.85, touched last September. Why are Tata Power shares falling today? The decline in Tata Power shares came after the arbitration tribunal ordered the company, with a majority of 2:1, to pay damages worth $490 million with simple interest of 5.33 per cent, from November 30, 2020, till the amount is paid. Tata Power, however, mentioned that it is still in the process of reviewing the order. "The three member arbitral tribunal, with a majority of 2:1, has partially allowed the claim that Kleros had filed in these arbitration proceedings, and has awarded Kleros, damages in the sum of (a) $490,320,000 with simple interest of 5.33 per cent from November, 30 2020 till the same is paid and (b) cost of $8,289,020.46 with simple interest of 5.33 per cent from July 1, 2025 till the same is paid," the company's exchange filing read. The case is related to Tata Power's Russian mining partner, Kleros Capital Partners. The mining firm got into a dispute with the Tata group company over a non-disclosure agreement tied to a proposed project in Russia. Kleros reportedly claimed that Tata Power broke confidentiality and non-circumvention terms. About Tata Power Tata Power is the country's largest domestic integrated power firm and has presence across the entire power value chain of conventional, renewable energy and power services. For the quarter ending March, Tata Power's revenue figure stood at ₹17,238 crore, marking a rise of 7 per cent from ₹16,256 crore recorded in the corresponding quarter of the previous fiscal. Profit after tax (PAT) stood at ₹1,306 crore, marking a solid double-digit rise of 25 per cent from ₹1,046 recorded in the same period of the previous fiscal.
Business Upturn
3 days ago
- Business
- Business Upturn
Tata Power shares in focus after $490 million SIAC award to Kleros Capital Partners
By Aditya Bhagchandani Published on July 3, 2025, 08:44 IST Shares of Tata Power Company Ltd will be in focus today after the company disclosed that it has been ordered to pay $490.32 million in damages to Kleros Capital Partners Limited by an arbitral tribunal under the Singapore International Arbitration Centre (SIAC) rules. In an exchange filing dated July 2, 2025, Tata Power said it received the tribunal's award after business hours on July 1. The arbitration, initiated by Kleros in November 2020, alleged breach of confidentiality and non-circumvention clauses under a Non-Disclosure Agreement linked to a proposed Russian coal mining project. The tribunal, through a 2:1 majority decision, partially upheld Kleros's claims and directed Tata Power to pay: $490.32 million in damages along with simple interest of 5.33% per annum from November 30, 2020, until payment, $8.29 million towards legal costs with interest from July 1, 2025. Tata Power said it is reviewing the award and evaluating all available legal options, including a possible challenge to the decision. Strong operational performance in Q4FY25 For the fourth quarter ended March 2025, Tata Power reported a 24% year-on-year jump in consolidated net profit at ₹1,306 crore, supported by a 7.9% rise in revenue to ₹17,096 crore. EBITDA surged 39.2% YoY to ₹3,245 crore with operating margins improving to 19%. The company's board has recommended a final dividend of ₹2.25 per share for FY25, subject to approval at the AGM on July 4, 2025. With both the arbitration outcome and upcoming AGM in play, Tata Power stock is expected to see heightened investor interest today. Ahmedabad Plane Crash Aditya Bhagchandani serves as the Senior Editor and Writer at Business Upturn, where he leads coverage across the Business, Finance, Corporate, and Stock Market segments. With a keen eye for detail and a commitment to journalistic integrity, he not only contributes insightful articles but also oversees editorial direction for the reporting team.
Associated Press
03-04-2025
- Business
- Associated Press
Silver Scott Mines Highlights Blockchain Role in Mitigating Trade War Impacts Through Direct Market Access
FRANKLIN, NEW JERSEY / ACCESS Newswire / April 3, 2025 / Silver Scott Mines, Inc. (OTC Pink:SILS), a pioneering company in the tokenization of real-world assets (RWAs) for the blockchain, outlines how decentralized infrastructure solutions could help mitigate disruptions caused by escalating global trade tensions. Blockchain decentralization offers tangible solutions for industries navigating global trade wars by bypassing traditional nation-state friction through five core innovations: Direct Global Access: Decentralized platforms enable businesses to engage international partners without intermediaries, sidestepping politicized trade barriers. Projects can tokenize assets (e.g., commodities, invoices) and trade them peer-to-peer via DeFi protocols, avoiding tariff-choked channels. Smart Contract Automation: Self-executing contracts enforce terms without government oversight, automatically handling customs compliance, payments, and delivery verification. This reduces disputes and eliminates bureaucratic delays. Stablecoin Payments: Cryptocurrencies like USDC provide tariff-resistant settlement mechanisms, cutting transaction costs by 40-60% compared to traditional forex channels. Immutable Provenance Tracking: Agricultural and manufacturing sectors use blockchain to verify product origins/quality in real-time, neutralizing protectionist 'dumping' accusations. Decentralized Arbitration: Blockchain-based dispute resolution platforms (e.g., Kleros) use tokenized governance to settle cross-border conflicts faster. 'These mechanisms collectively create parallel trade channels where compliance is cryptographic rather than geopolitical', said Tom Bustamante, strategic advisor for Silver Scott. 'While not eliminating all trade war impacts of course, blockchain does shift leverage from nations to market participants through transparent, rules-based systems. What decentralized systems provide isn't a solution to trade wars, but a means to circumvent their most disruptive effects.'
