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| Govt examining economic condition for SCI disinvestment |
| Press Trust of India / New Delhi Jul 01, 2009, 16:21 IST |
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The government is examining the economic climate for divesting its stake in state-run Shipping Corporation of India (SCI).
"The Ministry is examining the economic climate and we will take a view on this...We have to examine according to the economy," Shipping Minister G K Vasan told reporters here today when asked whether the Ministry will revive a proposal to offload 15 per cent stake in SCI.
"We have to improve the financial health of SCI. We want to do it. We would like to do it within a timeframe," he said. However, he declined to give a time limit for the same.
On requirement of finances by the shipping company for acquisition of ships, Shipping Secretary A P V N Sarma said that the Ministry is pursuing the Finance Ministry for making available a line of credit for not just SCI but also private shipping companies.
"Not only the SCI but private shipping companies in India — they are wanting finances to be made available. They are not wanting any grants or subsidies for that. Any of the foreign banks are now not lending (due to the global economic recession).
"On account of these there have to be a line of credit for which we are pursuing with the Finance Ministry. We hope to get some solution," Sarma said.
Earlier, the Minister said SCI is likely to acquire 32 ships for Rs 7,000 crore this fiscal.
"30 ships are already contracted for the purchase. Two more agreements are likely to be signed," he said .
Last year, SCI had planned to place orders for 40 vessels, including four very large crude carriers (VLCC), in three years at a total investment of $2.5-3 billion. At present, it has 79 ships.
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