SAIL, RINL seeks govt's green signal to hire ships

Steel PSUs SAIL and RINL have sought the government's permission to make their own shipping arrangements to import raw materials.      

At present, SAIL and RINL use the services of Transchart for importing raw materials, but according to the PSUs the charter firm "is not always in their commercial interest."     

"Proposals have been received from the Steel Authority of India Ltd (SAIL) and Rashtriya Ispat Nigam Ltd (RINL) for permitting them to make their own shipping arrangement to import raw materials," Minister of State for Steel A Sai Prathap said in a written reply to the Lok Sabha today.     

However, he added that the government has not yet taken any decision on the matter.     

SAIL and RINL route their imported raw material through vessels chartered by Transchart.     

But, in view of the "volatile shipping environment" and "individual requirements" for the raw material, the steel firms are seeking government's permission to charter their own ships.     

"Both SAIL and RINL have represented that the policy of routing their cargoes through M/s Transchart is not always in their commercial interest, in light of the volatile shipping environment and their individual requirements," he said.     

If the permission is granted, the steel firms said that they might be in a better position to respond to shipping market dynamics and save on freight costs involved in transporting bulk raw materials.