Anil Ambani’s Reliance Infra Scores Rs 526 Crore Win In Arbitration Battle With Aravali Power

Reliance Infrastructure Limited (RInfra), part of the Reliance Group led by Anil Ambani, has secured a win in its protracted legal battle with Aravali Power Company Private Limited (APCPL), with a three-member arbitral tribunal ruling in its favour and awarding the company ₹526.23 crore plus interest, it said in a BSE filing.

The dispute dates back to 2018, when APCPL — a joint venture between NTPC Limited, Haryana Power Generation Corporation, and Indraprastha Power Generation Company — terminated an Engineering, Procurement and Construction (EPC) contract awarded to RInfra. The contract related to works for APCPL’s Jhajjar supercritical thermal power project in Haryana. RInfra challenged the termination, calling it “illegal”, “invalid” and “wrongful”.

On August 12, 2025, the tribunal delivered a majority award siding with RInfra, partly upholding its claims for damages and costs from the termination. The tribunal concluded APCPL’s grounds for termination lacked merit, as per RInfra’s filing.

“This award vindicates our position and is a significant step forward,” RInfra said, adding that the proceeds would be channelled into growth capital. The company emphasised it is currently debt-free in terms of bank borrowings, enabling reinvestment into new projects.

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Aravali Power Company was set up to implement the Jhajjar thermal power plant, with a capacity of 1,500 MW, supplying electricity to Haryana and Delhi. EPC contracts like this typically cover the design, procurement, and construction of such infrastructure.

The termination in 2018 led to cost escalations and delays, prompting RInfra to seek damages through arbitration — a common route for resolving infrastructure contract disputes in India.

RInfra has diversified operations across power, roads, metro rail, and defence manufacturing. It has delivered projects such as the Mumbai Metro’s first line, urban road corridors, and national highways under the build-operate-transfer model, and also provides turnkey engineering and construction services.