At a recent board meeting, the Jawaharlal Nehru Port Authority (JNPA) approved a mediation plan to resolve a dispute with the joint venture of Boskalis Smit India LLP and Jan de Nul-Baggering India PVT LTD regarding a dredging project from 2019. The mediation will be overseen by the Mumbai Center for International Arbitration or a similar entity. Currently, a three-member arbitration panel is addressing the situation, with JNPA facing challenges over a final invoice of £194.64 million owed to the dredging company.
The JNPA has indicated that this payment is under investigation by the Central Bureau of Investigation. When factoring in late payment interest and additional claims from the dredging firm, the total amount has surged to approximately £800 million. Legal experts suggest that JNPA’s chances of winning a favorable arbitration ruling are slim, as both the Bombay High Court and the Supreme Court have discouraged fraud allegations and advocated for arbitration to resolve the matter.
During the arbitration proceedings, the tribunal urged the Boskalis-Jan de Nul JV to consider amicably settling the dispute. JNPA’s chairman has been authorized to finalize the mediator’s name and facilitate the process. The dredging project, intended to deepen a canal to 15 meters, was approved in 2017, with costs projected at £2.029 billion.
