The Hindu Business Line : India Steamship mulls buying crude tanker

INDIA Steamship Company (ISS), the shipping company belonging to the K.K. Birla Group, is considering the purchase of an Aframax type crude tanker, i.e. of the capacity ranging between 80,000 and 1,20,000 dwt.

``We are in the market to identify the right type of vessel and we have received several offers from international firms in the field,'' according to a spokesman for ISS.

The spokesman felt that the decision in this regard would be firmed up within a month or so. ``Since we will be acquiring a second-hand vessel, we have to take into account many things, such as the age of the vessel, which in turn will also determine the price and the probable period of deployment and last but not the least, the funding'', he observed.

Asked if the company would go for loans for funding the proposed acquisition, he replied that much would depend on the type of the vessel to be acquired. ``It is possible to fund the acquisition largely through internal generation; after all we have some money in hand from sale of vessels'', he said. The company received Rs 15 crore from the sale of `Ratna Deep', a Panamax bulk carrier.

With the acquisition of the crude tanker, the tanker strength of ISS will rise to two. `Ratna Abha', the 61,000-dwt crude tanker currently deployed in transportation of crude between Malaysia and India, is expected to continue operations till 2007.

The spokesman said that the company's earlier plan to acquire phosphoric acid and ammonia carriers had not been put on hold. ``It is still under negotiation with the financial institutions as part of the company's proposed expansion plan'', he said, but pointed out that the management was mulling if the acquisition of the crude carrier should receive priority.

At the company's annual general meeting in August last, the ISS Managing Director, Mr Ashok Kak, had indicated that there was a proposal to acquire on charter hire five specialised carriers — one gas carrier and four chemicals carriers — in addition to outright purchase of one second-hand LPG-ammonia carrier as part of the company's expansion plan. The gas carrier would be used for transporting ammonia and the chemicals carrier for phosphoric acid for two of the group's fertiliser companies, namely, Paradeep Phosphates located at Paradip in Orissa and Zuari Industries in Goa.

Send this article to Friends by E-Mail
Comment on this article to BLFeedback@thehindu.co.in

Stories in this Section
Aviation sector hopes for friendly Budget