The termination of the shipping contracts was part of a plan by ONGC to cut costs amid the fall in global crude prices. ONGC contracts are no longer reliable for us,” said the chief executive officer of another Mumbai-based shipping company, requesting anonymity. “The termination clause has been there in ONGC contracts for many years. Hence, we are withdrawing the three Indian-built ships from the ONGC contract and they will be without work soon,” the spokesman added. Since the issue of termination notices, ship owners have been lobbying the government to get the termination overturned.

Source: Mint May 25, 2016 10:15 UTC