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JNPT explores legal options against PSA

JNPT explores legal options against PSA

Jawaharlal Nehru port (JNPT) is said to be exploring all legal and administrative options on actions to be taken against PSA International for reneging its contract to set up the proposed fourth container terminal.

The proposed terminal project was designed to load 4.8 million standard containers a year. According to Kevic Setalvad, the additional solicitor general of India, it is possible to seek damages from PSA and also de-bar the firm for a certain period from participating in tenders issued by JNPT. Setalvad gave this opinion to JN port. At its next meeting, the board of trustees of the port is expected to decide on the matter.

The port may seek damages from PSA International after the Singapore-based global port operator defaulted last year on its obligation to build a Rs 6,700 crore container loading facility at IndiaÂ’s busiest container port.

The board of trustees of JN port decided to terminate the contract awarded to PSA for building the facility on 17 September because of the firmÂ’s failure to sign a so-called concession agreement for the project.

On 16 October, JN port informed PSA in a communication that it was withdrawing the letter of award given to the firm for building the terminal. The bid security of Rs 67 crore submitted by PSA for the project was subsequently encased by the port.

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