Sembcorp Industries has commenced arbitration proceedings with a vendor in India following disputes over a wind power project.
Green Infra Wind Energy, Sembcorp's indirect Indian wholly owned unit, has filed a claim for some $134.1 million against Siemens Gamesa Renewable Power, the vendor, which has filed a counterclaim for $321.7 million.
The Siemens unit was engaged to supply and build a 300MW wind power project consisting of 143 wind turbine generators and related transmission facilities.
According to Sembcorp, it terminated the project following "various defaults" on the part of the vendor.
Lawyers for both GIWEL and Sembcorp have advised that the counterclaim lacks merit and the probability of a successful claim is "remote".
"Therefore, no provision was made," says Sembcorp, adding that the arbitration is not expected to have any material impact on its earnings or NTA for FY2023 ending Dec 31.
See also: Kingsmen Creatives acquires 10% stake of Kingsmen E&E for $395,000
As cited on Sembcorp's website, GIWEL owns and operates 727.70 MW wind based power projects spread in 7 locations across 4 different states of Karnataka, Maharashtra, Madhya Pradesh and Gujarat.
