New Delhi: NHPC Limited has disclosed a significant development in a material arbitration matter related to its 2,000 MW Subansiri Lower Hydroelectric Project (HE Project). An Arbitral Tribunal pronounced its award on September 1, 2026, in the arbitration proceedings between M/s BGS-SGS-SOMA and NHPC Limited.
The award includes ₹3,92,31,46,740 (₹392.31 crore) and €15,36,530 (approximately €15.36 lakh). NHPC said the awarded amount is allowable as a project cost under the Central Electricity Regulatory Commission (CERC) Tariff Regulations, 2024, and can therefore be recovered through the project’s tariff.
Arbitral Tribunal Pronounces Award in Subansiri Lower Project Case
The arbitration relates to the work order for the construction of major components of the Subansiri Lower HE Project under Lot SSL-1.
The scope of work covered:
- Construction of diversion tunnels
- Construction of coffer dams
- Construction of the concrete gravity dam
- Construction of the plunge pool
- Construction of the cut-off wall
The Arbitral Tribunal pronounced its award on September 1, 2026, resolving the long-standing arbitration matter involving BGS-SGS-SOMA and NHPC.
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NHPC Award Amount Against Original Claim
BGS-SGS-SOMA had originally raised a claim of ₹796.87 crore and €28.76 lakh in connection with the work.
The final awarded amount is substantially lower than the original claim.
- Counterparty: BGS-SGS-SOMA
- Original Claim: ₹796.87 crore
- Original Claim: €28.76 lakh
- Awarded Amount: ₹392.31 crore
- Awarded Amount: €15.36 lakh
- Award Date: September 1, 2026
- Project: Subansiri Lower HE Project (2,000 MW)
The awarded sum includes the principal amount along with interest at 10% per annum, calculated from September 9, 2021, to August 31, 2026.
Award Qualifies as Allowable Project Cost Under CERC Regulations
A key financial implication of the arbitration outcome is that NHPC has stated that the awarded amount qualifies as an allowable project cost under the CERC Tariff Regulations, 2024.
According to the company, this means the amount can be recovered through the project’s tariff.
This regulatory treatment provides NHPC with a mechanism to recover the awarded cost through the tariff framework applicable to the project.
Disclosure Under SEBI Listing Regulations
NHPC disclosed the development to the stock exchanges in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
The disclosure represents a change in the status of the company’s material litigation case under arbitration and follows its earlier communication dated August 14, 2023, concerning material litigation matters under arbitration.
Subansiri Lower Hydroelectric Project
The arbitration matter is linked to the 2,000 MW Subansiri Lower Hydroelectric Project, one of NHPC’s major hydroelectric projects.
The dispute was associated with construction works involving critical components of the project, including diversion tunnels, coffer dams, the concrete gravity dam, plunge pool and cut-off wall.
With the Tribunal’s award dated September 1, 2026, the arbitration matter has reached a significant stage, while the awarded amount will be treated in accordance with the applicable CERC tariff framework.
About NHPC Limited
NHPC Limited is a Navratna Central Public Sector Enterprise under the Ministry of Power, Government of India. The company is India’s leading hydropower development organisation and is also expanding its presence across solar, wind, pumped storage and other renewable energy segments. NHPC is engaged in the development, operation and maintenance of power projects across India.
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