New Delhi: South Korean steel giant Posco has accused state-run SAIL of terminating a contract in an “unprofessional” manner after having delayed in signing the deal.
SAIL had terminated the offer made to Posco for constructing a blast furnace at its Bhilai steel plant citing the South Korean firm’s failure to sign the contract despite several reminders.
“SAIL is not professional. SAIL is not correct (to terminate the offer). Discussions on terms and conditions of the contract and over certain technical specification delayed the signing of the final agreement,” Posco E&C deputy general manager Man- Ho Jung said.
When contacted and informed about the allegations, SAIL chairman S K Roongta declined to comment.
In August last year, Posco E&C won the Rs2,000-crore contract for constructing a blast furnace at the Bhilai steel plant.
According to the Posco official, the final contract was to be signed by 15 September, 2008, but the draft was made available to the firm through many correspondences by October-end.
Finally, Jung alleged that the Indian steel firm asked for changing certain terms of the deal on 24 December last year at the eleventh hour, when the parties had assembled to put a final assent to the pact.