The Mint reported that lack of iron ore cargoes due to Karnataka’s ban on exporting the steel making commodity has led to the termination of INR 277 crore iron ore loading facility project at the New Mangalore port.

The facility was to be developed by Sical Logistics Ltd.

The trust that runs New Mangalore Port on Monday decided to terminate the project after Sical Logistics applied for force majeure, citing the export ban for not beginning work on the project that was awarded in 2009.

Sical Logistics had signed a concession agreement with the New Mangalore port in October 2009 to develop and operate a 6.62 million tonnes a year iron ore loading facility at the port for 30 years. It won the contract after agreeing to share 37% of its annual revenue from the facility with the port, emerging the highest bidder.

(Sourced from livemint.com)