State-run lender Canara Bank has sought bids to replace financially struggling Gammon Group with a new developer to complete construction and run a stalled container terminal at the Mumbai Port in a first such case in the ports sector.
Indira Container Terminal Pvt Ltd (ICTPL), the special purpose company formed by Gammon India Ltd, Gammon Infrastructure Projects Ltd and Spain’s Dragados SPL, to build and run the facility owes ₹750 crore to a clutch of five banks led by Canara Bank. The lending consortium includes Central Bank of India, Punjab National Bank, United Bank of India and India Infrastructure Finance Co Ltd.
The lenders have decided to exercise its rights vested under a substitution agreement signed with ICTPL and the Mumbai Port Trust to identify a new developer/operator and secure their interests.
Read more on The Hindu BusinessLine.
