Press Trust of India / New Delhi Jul 25, 2010, 14:23 IST
The Shipping Ministry is reportedly working on a Cabinet note on the proposed 10 per cent divestment in Shipping Corporation of India.
"The process is on (preparation of Cabinet note)," a shipping ministry official told PTI.
The government proposes to disinvest up to 10 per cent of its stake in the Shipping Corporation (SCI) through a follow-on public offer in the current financial year. However, the quantum of fresh equity to be raised by the company has not been worked out yet.
The Centre currently holds 80.12 per cent in SCI, while over 10 per cent is held by LIC. The remaining 3.15 per cent is with the public.
SCI is likely to utilise the proceeds from the follow-on offer for further acquisitions. SCI at present owns 76 ships of 5.1 million DWT (deadweight tonnage) and has interests in all segments of shipping trade. In addition, it mans and manages 60 vessels of 0.2 million tonnes DWT-- which is the total weight of the ship including the cargo, crew, fuel etc.
SCI stake sale is part of the government's plans to raise up to Rs 40,000 crore this fiscal through divestment. Besides SCI, the government is looking at offloading its stake in three shipping-related companies--Cochin Shipyard and Dredging Corp of India.
The government had raised about Rs 25,000 crore last fiscal by divesting its stakes in NHPC, Oil India, NTPC, Rural Electrification Corp.
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