Arbitrator denies Sterlite Technologies' Rs 145 crore claim against BSNL

Sterlite Technologies BSNL arbitration decision: Broadband technology firm Sterlite Technologies suffered a setback as an arbitrator dismissed its claims amounting to Rs 145 crore against Bharat Sanchar Nigam Limited (BSNL) in an optical fibre cable laying project, according to a regulatory filing on Friday. Sterlite Technologies (STL) stated that it is currently exploring options to contest the arbitrator's decision.

"BSNL had deducted payments to the tune of Rs 145.02 crore for trenching done at a depth lesser than 165 cms duly approved by BSNL, due to legitimate site constraints. STL filed its claims towards wrongful imposition of depth penalty by BSNL. The arbitrator has rejected STL's claims vide award dated April 18, 2024," STL stated in the filing.

The arbitration proceedings were presided over by Justice Badar Durrez Ahmed, former Chief Justice of the Jammu and Kashmir High Court.

Despite the setback, Sterlite Technologies said it remains committed to evaluating all available avenues to address the situation and protect its interests. The company is known for its pioneering work in broadband infrastructure and optical fibre cable solutions, playing a crucial role in India's digital transformation efforts.

Sterlite Technologies' dispute with BSNL highlights the complexities and challenges often encountered in large-scale infrastructure projects, underscoring the importance of clear contractual agreements and effective dispute resolution mechanisms.

(With PTI inputs.)