 "JNPT freezes payment to Royal Boskalis for age rule breach")
“The board (of directors) has passed a resolution to stop payment to Boskalis. We have also requested the ministry (of shipping) to disqualify the firm from undertaking projects in India,” a senior trustee at Navi Mumbai-based JNPT told Business Standard. According to the officials, the payment amounts to about Rs 200 crore.
Boskalis was the lowest bidder for the project at Rs 1,219.8 crore and the company is expected to take a legal route to claim its money.
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The company was awarded the contract last year to dredge the harbour, as JNPT wished to increase the depth of the channel to 14 metres from the existing 11 metres, to allow larger vessels to dock.
Boskalis, according to officials of JNPT and the ministry, used a dredger more than 40 years old for over six weeks. According to the tender document, dredgers to be used should be less than 15 years old.
The directorate-general of shipping also does not allow vessels more than 25 years of age to operate along the coast.
According to another senior JNPT official, "The company said it brought in the old vessel, Sagar Hansa, for survey and not for dredging. We have to examine their explanation. If we are not satisfied, we may slap a penalty.”
“We do not want to comment on the matter,” said Jaap Dekker, project manager, Royal Boskalis.
The port has been facing congestion and competing privately-run facilities on the west coast, such as Adani Port and APM Terminals.
These have attracted a large amount of cargo which might have otherwise gone to JNPT.
The port is also in the process of awarding a contract to develop a Rs 9,000-crore mega container terminal.