NHAI Arbitration Award Funds
In a major relief to the infra and construction companies currently facing acute cash crunch, NHAI strictly adhering to the directive of the Central government, has recently started releasing payments against 75% of arbitration awards won and IRB is among the first to receive an amount of Rs. 270cr. The move is expected to somewhat ease the liquidity woes of companies engaged in infrastructure, iron and steel, engineering, and power sectors, as they are the ones that have been highly impacted. It may be recalled that due to demonetization, Discom collections has increased by a whopping amount of Rs. 3,000-cr till Dec 15. Apparently, customers in certain states have energetically cleared arrears and even deposited advances, thereby improving the financial health of these companies.