Tata Power Share Price Falls over 4%; Singapore Court Dismissed $490 Million Arbitration Challenge

Tata Power has lost its challenge against a $490 million arbitration award in Singapore in a dispute with Kleros Capital Partners over a proposed coal project in Russia, as per a regulatory filing dated August 27, 2026. 

The Singapore International Commercial Court rejected Tata Power's objections to the amount of damages and its claim that the arbitration process involved a breach of natural justice. The court also ordered the company to pay costs, although the amount has not yet been fixed. 

Court Leaves Arbitration Award Intact 

The arbitration was conducted under the Singapore International Arbitration Centre rules. Tata Power had disclosed in July 2025 that a three-member tribunal awarded Kleros $490.32 million in damages through a two-to-one majority decision. 

The amount carries simple interest of 5.33% from 30 November 2020 until payment. Kleros was also awarded $8.29 million towards legal costs, with interest at the same rate applicable from 1 July 2025 until payment. 

Partnership Talks Started In 2013 

The dispute began when Kleros approached Tata Power in 2013 with a proposal to jointly bid for a coal deposit in Russia. Kleros estimated at the time that the deposit could contain reserves worth about $1.1 billion. 

The two parties signed a non-disclosure agreement in September 2013, which remained in force for four years. Differences emerged in 2015 over who would lead the bid and how the ownership of the proposed project would be structured. The relationship ended in 2016. 

Tata Power Bid After Agreement Expired 

Kleros did not take part in the federal auction for the mine in December 2017 and later wound down its Russian operations. Tata Power's Russian subsidiary subsequently submitted a bid after the non-disclosure agreement had expired and secured the mining licence. 

The licence was later surrendered after Tata Power concluded that the project was not economically viable. Kleros then began arbitration proceedings, alleging that Tata Power had used confidential information shared during their discussions and had acted to exclude Kleros from the project. 

Company Plans Further Appeal 

The tribunal ruled in favour of Kleros, leading to the $490.32 million damages award. Tata Power challenged both the damages calculation and the majority decision before the Singapore court, but the challenge was dismissed. 

Tata Power said it has 28 days to appeal the decision before the Singapore Court of Appeal and plans to file an appeal within that period. 

Read More: CG Power Semiconductor Plant Targets $500 Million Annual Revenue! 

Tata Power Share Price Performance  

As of August 27, 2026, 11:11 am, Tata Power share price was trading at ₹349.00, down 4.12% from the previous closing price. 

Conclusion  

With the Singapore court rejecting its challenge, Tata Power will pursue an appeal against the ruling. The dispute relates to a proposed coal mining project in Russia and dates back to 2013. 

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