Sembcorp Industries has begun arbitration proceedings between its indirect Indian wholly owned subsidiary, Green Infra Wind Energy Limited (GIWEL), and Siemens Gamesa’s Indian subsidiary.
The arbitration proceedings involve issues and disputes arising from a composite supply contract and land and site development contract (project contract) entered by GIWEL with Siemens Gamesa, the vendor, for the supply, erection and commissioning of a 300MW wind farm, Sembcorp said.
The project consists of 143 wind turbine generators and associated transmission facilities.
GIWEL terminated the project contract and filed a Statement of Claim against the Vendor for Rs.8,159.85m ($134m) during its financial year ended 31 March 2023.
Siemens Gamesa filed its Statement of Defence and counterclaimed for Rs.19,575.50m ($321.7m).
On 15 May 2023, the arbitral tribunal agreed upon the issues relating to claims to be determined by way of the arbitration, said Sembcorp.
The arbitration is not expected to have any material adverse impact to its financial results and no provisions were made in relation to the arbitration, added the company.
Sembcorp said it has reviewed the relevant information pertaining to the arbitration and taken appropriate external legal advice on the same.
Siemens Gamesa responded to reNEWS with the following statement: “Arbitration proceedings are currently sub-judice before the Arbitration Tribunal in India.
“Siemens Gamesa is already contesting the claims and is taking all steps in accordance with law to protect its rights and interests.
“The project under discussion is already operational and generating wind power. Indeed, disputes between the parties would be decided by the Tribunal.”