KOLKATA | june 08, 2017: Hindustan Copper (HCL) has floated tender for award of fresh contract for long term operation and maintenance of Surda Mine in Jharkhand. The move by the state owned copper major followed after it received a notice dated June 2, 2017 from India Resources Limited (IRL), Special Purpose Vehicle (SPV) of Eastern Goldfields Ltd (EGL), the operater of the mine, stating to have purportedly terminated the operation and maintenance of Surda mine contract.

In a statement issued on Wednesday, HCL said it has taken stand that the above notice is unilateral, wrongful and breach of the present contract for which HCL is entitled to claim liquidated damages from IRL/EGL. "There has not been any failure on the part of HCL to pay to undisputed monthly payments for a continuous period of 90 days from the date of submission of bill for the works executed," the statement added.

The performance of IRL/EGL has deteriorated sharply since April 2017 and it did not achieve monthly production targets thereby miserably failing in its contractual obligations. In fact, IRL/EGL has huge outstanding liabilities in the market of more than Rs 40 crore which is payable to its Bankers (creditors), suppliers and wages to its employees including statutory payments, HCL said. Meanwhile, the copper major said it has taken measures to appoint an agency for re-starting the operations of Surda mine at the risk and cost of IRL/EGL.

(Source: http://economictimes.indiatimes.com/)