Hindustan Construction clarifies on news item regarding order cancellation

With reference to the news item appearing in leading financial daily titled "Order cancellation hits Hind Const", Hindustan Construction Company Ltd has clarified that there was a Press Report that the Jammu & Kashmir (J&K) Government based on the recommendation of the Cabinet Sub Committee setup by it for the Sawalkote Project, had cancelled the contract and that they intended to go for global re-biding of this project. However, the Company has not received any written communication to this effect from either the State Government and / or J&K State Power Development Corporation.

Based on the said press reports, the Sawalkote Consortium, comprising of SPAS of Norway, Ozaltin of Turkey and the Company, filed a Petition with the High Court o J&K at Jammu for seeking a stay on this decision of the J&K Government.

The High Court on November 22, 2006 has passed an order directing the J&K Government not to call for new global tender and has further directed J&K State Power Development Corporation to maintain status qua as it exists till the next date of hearing which is December 13, 2006.

Source : Equity Bulls

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