SCI hints at upside to JV with Iran after lifting of sanctions

Firm says a decision to do so may be taken "at the highest level" keeping in mind strategic interests

State-run Shipping Corporation of India (SCI) has hinted the lifting of sanctions against Iran presents some hope for revival of the joint venture Irano-Hind Shipping Company, and a decision to do so may be taken "at the highest level" keeping in mind strategic interests.

"Call for dissolving was taken because sanctions were eroding the company and sanctions were affecting me (SCI) also," SCI's chairman and managing director A K Gupta told PTI recently, when asked about the fate of the JV, where it holds 49 per cent stake.

However, Gupta was quick to add, "The sanctions on Iran are to be lifted, we need Iran".

He also reminded that even though a decision was taken in 2013, it has not been dissolved yet and it is a "political decision" where a call on the company's fate will be taken at the "highest level".

Gupta said that strategically, Iran is very important for the country and mentioned that India is developing the Chabbar port keeping in mind the long-term interests.

He, however, added that there is no direct link between the port and the shipping company formed in 1975.

"No final decision has been taken on the JV dissolution though lot of work has been done towards dissolution. To go ahead and finally dissolve it, whether to end it or wait for a bit, we are little short of it. It is at the highest level, let us see," he added.

He, however, said that years of sanction have seen an erosion in the value of the company and more investments will be required to revive the company.

In 2013, the previous UPA government had decided to dissolve the joint venture as sanctions on Iran made business very difficult.

"Finding gainful employment and hires for the fleet was getting difficult following the sanctions and hence, it has been decided that the company will cease operations," SCI's then chairman and managing director S Hajara had said.

It was decided to share the assets --- which stood at seven vessels as of March 2010 --- between the partners and it was informed that the process of dissolution is a "lengthy" one.

Union Shipping and Ports Minister Nitin Gadkari had last week said that he will be visiting Iran shortly to identify investment opportunities.