SCI plans to invest $1 bn in new ships every year

State-run Shipping Corporation of India (SCI) is planning to invest $1 billion (Rs 4,500 crore) every year to acquire new ships. The company is likely to exceed its fleet capacity by over 10 million deadweight tonnage (DWT — the total weight of the ship, including the cargo, crew and fuel).

Speaking to Business Standard, SCI Chairman and Managing Director S Hajara said this year, the corporation’s overall fleet capacity will exceed six million DWT, while in the next five to seven years, the capacity will exceed 10 million DWT. Commenting on funding the proposed expansion, Hajara said 20 per cent of the funds would come through internal accruals and the remaining 80 per cent through debt, which will be mainly raised in international markets. Indian banks do not have an appetite to lend to the sector, he said. SCI owns 76 ships (5.1 million DWT), besides manning 60 vessels (0.2 million DWT). Acquisitions would add another 1.7 million DWT to the existing fleet.