Dispute resolution notified by AVPPL and Kerala Government

The company has filed a confirmation letter regarding the Closing of Arbitration proceedings of Adani Vizhinjam Port Private Limited, located in Kerala.

Dispute resolution notified by AVPPL and Kerala Government

The company has stated that under Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015  this is in furtherance to our letter dated 14th August 2023, concerning intimation of ongoing litigations of the Company and its subsidiaries, including the arbitral matter of Adani Vizhinjam Port Private Limited (AVPPL), wholly owned subsidiary of the Company.

 

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It is informed that the arbitral tribunal passed the consent award on 8th March 2024, a copy of which was received on 17th March 2024, with the arbitration proceedings between AVPPL and the Government of Kerala (GoK). As per consent award, inter-alia the GoK has extended the completion date from 3rd December 2019 to 3rd December 2024; and the Concession Agreement is extended by 5 years until 3rd December 2060, subject to fulfillment of conditions therein. The arbitration between AVPPL and GoK stands closed.

 

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The government of Kerala and the Gujarat-based Adani group were involved in a legal dispute due to a delay in completing a project. Adani, the private partner, has repeatedly invoked the force majeure clause to explain the delay. As a result, the parties had agreed to enter into an arbitration to resolve the dispute.

The port is a multi-purpose, all-weather, green port located 16 kilometers (9.9 mi) away from the Trivandrum International Airport at Vizhinjam, Thiruvananthapuram, the capital city of Kerala. It is also the first automated port in India and the sole port in the country to be located adjacent to an international shipping route. Being a greenfield seaport, it provides flexibility in design and future expansion. The seaport will be connected by India's third-longest railway tunnel, presently under the planning phase.

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