GE Power India Limited has reached a settlement agreement with Navayuga Engineering Company Limited (NECL).

GE Power India Limited has reached a settlement agreement with Navayuga Engineering Company Limited (NECL).

The arbitration regarding the E&M Turnkey Contract between GE Power India Limited and Navayuga Engineering Company Limited (NECL) has been ongoing since 2020. Both parties have now agreed to settle the dispute. NECL will pay a total of ₹31,45,26,287 as part of this settlement. This transaction does not qualify as a related party transaction.

The payment will be made in quarterly instalments, with the final instalment expected to be completed by 2026. NECL will pay ₹31,45,26,287 as part of the final settlement.

Impact on Financial Position

This payment will be handled according to the Business Transfer Agreement between GE Power India Limited and GE Vernova Hydro Power India Private Limited (formerly GE Power Electronics (India) Private Limited), which covers the sale and transfer of the company’s hydro business.

Financial Highlights

GE Power India reported a reduced consolidated loss of ₹9.53 crore for the June 2024 quarter. This is an improvement from the ₹135.79 crore loss in the same quarter last year. The company’s total income increased to ₹465.80 crore, up from ₹440.28 crore a year earlier.

The company ended the quarter with an order backlog of ₹3,917 crore, a 15.8% increase from ₹3,382.3 crore in June 2023. The first quarter of the financial year 2024-25 began positively, with the company’s strategy resulting in new orders and a favourable sales mix.

About GE Power India Limited

GE Power India Limited is a major player in India’s energy sector, offering engineering, construction, manufacturing, procurement, and servicing for power plants and equipment. The company makes and sells steam generators in India and provides rail equipment solutions. Headquartered in Bandra, Mumbai, it was originally founded as Asea Brown Boveri Management Limited on September 2, 1992. GE Power India Limited operates manufacturing plants in Durgapur, West Bengal, and Noida, Uttar Pradesh, producing supercritical and ultra-supercritical power boilers.

On September 3, 2024, the share price of Ge Power India Ltd opened at ₹425.05, touching the day’s high at ₹434.50, as of 11:51 AM on the NSE.

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