SCI gives contracts for 31 vessels

The Shipping Corporation of India (SCI) has given contracts for 31 vessels worth about Rs 6,000 crore, which will be delivered before 2014. The company will also order 15 more vessels by the end of this financial year to boost its fleet strength.

“We want to increase our tonnage by 2 million tonnes, which will help us to raise our total tonnage to 7.5 million tonnes by 2014. Our company has ordered 31 vessels worth about Rs 6,000 crore and will order another 15 vessels by next year,” said J N Das, Director, SCI.

He added that of these 31 vessels, nine will be financed through the money raised from the ongoing follow-on public offer (FPO) and the rest at a debt equity ratio of 80:20. The firm has floated a premium issue, with a price band between Rs135 and Rs140 per equity share of Rs 10 each, to fund the purchase of new vessels. The issue which opened on Tuesday will close on Thursday for qualified institutional buyers and on Friday for retail investors. A 5 per cent discount on issue price is allowed for retail investors and employees.

“Indian vessels carry only 9.5 per cent of the total trade happening in our country, while more than 90 per cent of trade pie goes to foreign firms. Hence, it is high time for us to increase the number of vessels, so that we can atleast retain the present numbers,” he said. “Total traffic in Indian ports is expected to touch 877 million MT by 2012 and to 962 million MT by 2014. We have to cash in on this opportunity and should acquire as much of ships we can,” Das added.

Regarding its proposed joint venture (JV) with Coal India Ltd, Das said, “Coal imports are going to rise to 83.3 MT by 2012. Hence, talks are on for a JV with Coal India. We hope that it will fructify soon.” Das hinted that the firm was likely to diversify its business further to logistics, port and terminal sectors.