New Delhi: In yet another backlash to China, India has abandoned a $29.8 million contract placed three years ago with Chinese port crane maker Shanghai Zhenhua Heavy Industries Co Ltd (ZPMC). The contract was for acquiring four rail-mounted quay cranes to be installed at Chabahar port in Iran.
India Ports Global Ltd, the entity formed to develop and run the India-funded Chabahar port, has floated a fresh tender to buy four new post Panamax RMQCs of 65 tonnes capacity each, a top government official was quoted as saying by The Hindu Business Line.
The contract for the quay cranes ordered at ZPMC was scrapped as the crane maker delayed construction on the gears, citing reluctance by foreign banks to open letter of credit that assures payment to the supplier despite a sanctions-waiver given by the US to the Chabahar port project.
According to a government official, ZPMC was “reluctant” to supply cranes in view of the on-going border tensions between India and China.
“ZPMC won’t like Chabahar to come up because they have built Gwadar port in Pakistan which is just 90 km away,” the official said.
“The wordings of the order have been so carefully done, Chinese suppliers are not pin-pointed. But, definitely, Chinese suppliers will not be allowed to participate and they will not give any stuff for Chabahar port,” the official added.
