BGR Energy Systems has rallied 17% to Rs 124 on the BSE in early morning trade after the company announced that it has executed agreement with Hitachi, Japan and Hitachi Power Europe GmbH (HPE), Germany to settle their disputes.
“The agreement provides for certain payments to be made by HTC to the company in a phased manner over a period of time on achievement of number of milestones/events/transactions so as to realise the objectives mentioned hereinabove,” BGR Energy said in a press release.
The agreement has come into effect and has become legally binding with effect from 29th April, 2016 upon fulfillment of the conditions mentioned therein.
The agreement, inter alia, provides for, execution of NTPC contracts for Solapur (2 x 660 MW) and Meja (2 x 660 MW) of Supercritical Steam Generators (Boilers) and Lara (2 x 800 MW) Supercritical Steam Turbines and Generators (STG) (collectively referred to as "NTPC Projects") and for certain arrangement with respect to the future of the joint venture (JV) relationship between HTC, HPE and the Company in respect of the existing Joint Venture companies viz., BGR Boilers Private Limited and BGR Turbines Company Private Limited after completion of the NTPC Projects in compliance of the NTPC contract and other related conditions.
These JV companies were formed in the year 2010 for technical and financial collaboration for manufacture of super critical boilers and steam turbines and generators.
The company said, in fulfillment of the conditions of the Agreement, the Company has filed relevant applications for withdrawal of all pending litigation and other legal proceedings filed against HTC, HPE, Mitsubishi Heavy Industries Limited, Mitsubishi Hitachi Power Systems Ltd. and Mitsubishi Hitachi Power Systems Europe GmbH.
At 09:49 am, the stock was up 15% at Rs 122 on the BSE. A combined 1.71 million shares changed hands so far against an average sub 200,000 shares that were traded daily in past two weeks on the BSE and NSE.