Gujarat Maritime Board (GMB), the Port Regulatory Authority of Gujarat has encashed a Bank Guarantee of Rs 185.35 million provided by Gujarat Pipavav Port. The Guarantee was furnished by the company pursuant to the conditions stipulated by GMB while approving the company's project expansion plan vide its letter dated April 10, 2015.
The company's project expansion plan included capex towards increasing the port's bulk cargo handling capacity at Pipavav on the back of coal-based power plants that were planned in the vicinity by certain private parties. In absence of these power plants the company has not increased its bulk cargo handling capacity.
In view of the company's inability to incur the capex expansion plan as envisaged, GMB has on February 13, 2019 encashed the bank guarantee of Rs 185.35 million.
Gujarat Pipavav Port is engaged in providing port handling and marine services for container cargo, bulk cargo, and LPG cargo.