Gammon set to be replaced in Mumbai port project.

State-run lender Canara Bank has sought bids to replace financially struggling Gammon Group to complete the construction of, and run, a stalled container terminal at Mumbai Port Trust.

Indira Container Terminal Pvt Ltd (ICTPL), the special purpose vehicle floated by Gammon India Ltd, Gammon Infrastructure Projects Ltd and Spain’s Dragados SPL to build and run the facility, owes about Rs. 750 crore to a consortium of lenders led by Canara Bank.

The others in the consortium are Central Bank of India, Punjab National Bank, United Bank of India, and India Infrastructure Finance Co Ltd.

The lenders have decided to exercise their rights — vested under a substitution agreement signed with ICTPL and Mumbai Port Trust — to identify a new developer/operator and secure their interests. BusinessLine has reviewed a copy of the EoI issued by Canara Bank.

The project, which has achieved 65 per cent physical progress, is being monitored by the PMO for an early resolution.

Gammon India and Gammon Infrastructure were hauled to the NCLT by the lenders in separate cases after they defaulted on their loans.

HBL