SEMBCORP Industries’ : S69 0% indirect wholly-owned Indian subsidiary, Green Infra Wind Energy Limited (GIWEL), is in arbitration with its vendor, Siemens Gamesa Renewable Power, over issues and disputes from a composite supply contract and land and site development contract.

The contract was entered into by both GIWEL and its vendor to supply, erect and commission a 300MW wind power project consisting of 143 wind turbine generators and associated transmission facilities.

Sembcorp said that following various defaults on the part of the vendor, GIWEL terminated the contract and filed a statement of claim against the vendor for 8.2 billion rupees (S$134.1 million) in the vendor’s FY2023.

The vendor later filed its statement of defence and counterclaimed 19.6 billion rupees (S$321.7 million).

Both Sembcorp and GIWEL believe that the vendor’s counterclaims lack merit, and that GIWEL is “in a strong position to defend the arbitration against the vendor”.

Sembcorp added that no provisions have been made, and the arbitration is not expected to have any material impact on Sembcorp’s earnings per share or net tangible assets per share for FY2023.

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Sembcorp shares fell 0.2 per cent or S$0.01 to close at S$5.40 on Monday, before the announcement.