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Business News/ News / India/  Govt to invite bids for Shipping Corporation of India in May: Report
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Govt to invite bids for Shipping Corporation of India in May: Report

SCI, which is engaged in the operation of bulk carriers and crude oil tankers, had to separate its non-core assets before the government could proceed with the sale of its 63.75% stake.

Viraat Super tanker or large crude carrier owned by the Shipping Corp of IndiaPremium
Viraat Super tanker or large crude carrier owned by the Shipping Corp of India

The Indian government is set to invite financial bids for the privatisation of the Shipping Corp of India Ltd (SCI) next month.

This move comes after years of delay in selling the state-run company, two government officials told Reuters.

The Indian government, under the leadership of Prime Minister Narendra Modi, had announced plans to privatise several state-run companies in 2019, including the sale of its stake in Shipping Corp of India Ltd (SCI). However, regulatory delays had previously stalled these efforts.

Shipping Corp of India Ltd (SCI), which is engaged in the operation of bulk carriers and crude oil tankers, had to separate its non-core assets before the government could proceed with the sale of its 63.75% stake.

After receiving regulatory approval in late February, SCI successfully completed the spinoff of its non-core assets last month.

The resulting demerged entity, known as SCI Land Assets Ltd, is slated to be listed before April 23, according to one of the government officials, who also stated that the government plans to complete the listing process soon.

The government now aims to invite financial bids for SCI, which owns and operates around one-third of India's total tonnage, by mid-May, said the two officials.

The officials did not want to be named as the plan is not yet public.

A final decision will be taken on April 14 by a panel headed by India's cabinet secretary, they said.

One of the government officials revealed that a panel will also be considering a proposal to invite initial bids for selling the government's 31% stake in Container Corporation of India Ltd, which has been delayed since 2020.

The finance ministry did not provide an immediate response to an email seeking comment.

 

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Published: 11 Apr 2023, 10:55 AM IST
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