HBT faces termination for walkout

HBT faces termination for walkout
Haldia Bulk Terminals (HBT) came under flak for wrongfully abandoning contractual obligation of handling dry bulk cargo at the Haldia port. Now the Kolkata Port Trust (KoPT) has decided to terminate the 10-year deal.
“We will claim at least around Rs. 1,000 crore as compensation,” Manish Jain, acting Chairman of KoPT, said. “We’ll also go in for a re-tender of the cargo handling operations at berths 2 and 8.”
Additionally, the port has served a notice to HBT, expecting to encash a performance guarantee amounting to Rs. 4 crore.
According to the port, HBT’s actions are illegal under the agreement. “Our board of trustees has decided to take legal action claiming compensation for financial losses that it will suffer for the remaining 7 years (up to 2020) under the contract,” Mr. Jain continued.
KoPT is planning to issue a letter of intent to the successful bidder by December. They expect that both the berths should be back in action by March.
The port has authorised the management to blacklist HBT. They may also blacklist ABG, the co-promoter of HBT.

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