DISINVESTMENT OF SCI BY OCTOBER 2003
LOK SABHA
The Government have
decided to disinvest Shipping Corporation of India. Recently SCI
had placed orders for building 2 very large crude oil carriers
at Hyundai Shipyard, South Korea and was in the process of signing
the contract for building one Aframax crude oil tanker at Cochin
Shipyard. Both these acquisition proposals were initiated before
the process of disinvestments started in SCI. The impact of ;procurement
of new ships by SCI would be positive which would also enhance
the profitability of the Company. Placing orders for acquisition
of the ships at the prevailing low new building price would be
favourable for future profitability and its valuation. This would
also ensure that SCI reserve/internal resources were gainfully
utilized. Moreover, the Government would not provide any budgetary
support for the acquisition and the same would be funded by the
company through internal resources and borrowing from commercial
market. The disinvestments of SCI is likely to take place by October
2003 as per the schedule of disinvestments prepared by the Ministry
of Disinvestment.
The above information
was given by Shri Dilipkumar Mansukhlal Gandhi, Minister of State
in the Ministry of Shipping in Lok Sabha today in a written reply
to Shri Vilas Muttemwar.
