New Delhi: The government has said that the due diligence process is underway in the strategic disinvestment of Shipping Corporation of India (SCI). In a written response to a question raised in the Lower House of Parliament, Minister of State (MoS) for Finance Dr Bhagwat Kishanrao Karad said, “Preliminary Information Memorandum (PIM)/Expression of Interest (EoI) was floated on 22.12.2020. Multiple EOIs were received by the due date for submission (01-03-2021). The eligible bidders were shortlisted and due diligence process is underway in the second stage of the transaction.”
The Cabinet Committee on Economic Affairs (CCEA) had accorded “in-principle” approval to the strategic disinvestment of the government’s shareholding of 63.75 percent in Shipping Corporation of India Limited (SCIL) along with the transfer of management control in November 2019.
The process of strategic disinvestment of Shipping Corporation of India involves disinvesting government shareholding of SCI along with management control of the company to a strategic buyer. The non-core assets of the SCI have been hived off in accordance with a demerger order dated February 23, 2023 issued by the Ministry of Corporate Affairs (MoCA) for its demerger/transfer to the demerged company — Shipping Corporation of India Land and Assets Limited (SCILAL), which will continue to be a government company. These non-core assets would not be transferred to the strategic buyer of SCI.
The strategic disinvestment process is based on an open, transparent, competitive bidding process where the QIBs participate and the sale price is discovered. The net value of non-core assets (land and buildings) of SCI in FY21 was Rs 2,392 crore.