The arbitration, conducted under the Singapore International Arbitration Centre (SIAC) rules, stems from claims made by Kleros that Tata Power breached confidentiality and non-circumvention clauses outlined in a Non-Disclosure Agreement. The NDA was signed as part of discussions for a potential coal mining partnership in Russia.
In a stock exchange filing dated 2 July 2025, Tata Power informed investors that the three-member tribunal, by a majority of two to one, has awarded Kleros damages amounting to $490.32 million, along with simple interest at the rate of 5.33% from 30 November 2020, until payment is made. Additionally, the tribunal awarded Kleros a further $8.29 million as legal costs, also carrying simple interest of 5.33% from 1 July 2025, until paid.
The arbitration proceedings were initiated by Kleros in November 2020, and oral hearings concluded in February 2024. The award was received by Tata Power after business hours on 1 July 2025.
Tata Power has stated that it is currently reviewing the contents of the award and evaluating all available legal options, including a possible challenge to the decision.
Tata Power Company is a leading integrated power company. Its consolidated net profit jumped 16.49% to Rs 1,042.83 crore on a 7.88% increase in revenue from operations to Rs 17,095.88 crore in Q4 FY25 over Q4 FY24.