New Delhi: The government is likely to invite bids for the privatisation of Shipping Corporation of India (SCI) after listing its non-core asset business SCILAL on the stock exchanges this month, an official said. The government has hived off the non-core assets of SCI in a separate company, Shipping Corporation of India Land And Assets Ltd (SCILAL) valued at Rs 2,392 crore as of March 31, 2022.
As part of the demerger process, SCILAL will be listed on the stock exchanges, and every shareholder of the Shipping Corporation of India (SCI) will get one share of SCILAL. "The stock exchange listing of SCILAL should happen by June. Thereafter clarity will emerge of privatisation of SCI and then financial bids will be invited," said an official. The government currently holds a 63.75 percent stake in SCI.
In February, the Ministry of Corporate Affairs approved the scheme of arrangement between the Shipping Corporation of India and SCILAL.
The cabinet, in November 2020, had given in-principle approval for the strategic divestment of the Shipping Corporation.
In December 2020, the Department of Investment and Public Asset Management (DIPAM) invited expressions of interest (EoI) for the strategic sale of its entire stake in SCI, along with the transfer of management control. Following that, in March 2021, it received multiple EoIs for SCI privatisation.
Mumbai-headquartered SCI's owned fleet includes bulk carriers, crude oil tankers, product tankers, container vessels, passenger-cum-cargo vessels, LPG, and offshore supply vessels. In the current fiscal, the government has set a disinvestment target of Rs 51,000 crore. It has mopped up Rs 4,235 crore so far this fiscal through minority stake sales.
(PSU Watch– India's Business News centre that places the spotlight on PSUs, Bureaucracy, Defence and Public Policy is now on Google News. Click here to follow. Also, join PSU Watch Channel in your Telegram. You may also follow us on Twitter here and stay updated.)