Indian naval shipbuilder Reliance Naval and Engineering Limited (RNEL) has confirmed that it has received notification from the Indian Ministry of Defence (MoD) to terminate its construction of offshore patrol vessels (OPVs) for the Indian Navy (IN).
The company said in a recent stock exchange filing that the MoD's "show cause notice" outlined a requirement to "terminate the contract related to five Naval OPVs". RNEL said it will take "all the necessary steps and actions to protect its rights including arbitrary invocation of bank guarantees".
RNEL also confirmed that the company is currently undergoing a "corporate insolvency resolution process" under an order in January passed by India's National Company Law Tribunal (NCLT).
Want to read more? For analysis on this article and access to Jane's unrivalled data and insight, learn more about our subscription options at janes.com/products