The Hindu Business Line : SCI mulls diversifying into shipbuilding

New Delhi, Aug. 15 The Shipping Corporation of India (SCI) is planning to diversify into shipbuilding in collaboration with existing players — both domestic and international.

The Rs 4,210-crore public sector shipping major plans to either tie up with an international firm or pick up stake in one of the consortia that have shown interest in setting up a new mega shipyard project under the Centre’s proposed public-private partnership scheme.

Incidentally, SCI had not submitted an expression of interest (EoI) to the Shipping Ministry which had sought EoIs from firms to set up international size shipyards in the Western and Eastern coasts of the country.

Those who put in their applications include Bharati Shipyard, Larsen & Toubro, and South Korea’s STX Shipbuilding. However, those firms that have not submitted the EoIs are also allowed to bid for the project as and when the tenders are floated.

“We have not yet decided the exact mode of participation. But we are keen to foray into the shipbuilding sector,” said a company official, adding that it was in talks with international shipyard firms.

Project plans

With cash reserves of over Rs 4,800 crore, SCI is looking into new projects such as building of ships and dredging beyond offering bulk and liner shipping services.

“We are keen to have a minimum 26 per cent stake in the proposed shipyard venture, which will give us a board presence. Moreover, we may not require a Cabinet approval in the project if our investment is below Rs 500 crore,” said the official.

The official added that the Shipping Ministry had also written to SCI in late 2006 giving its nod to diversify beyond its existing activities.

Incidentally, SCI is also looking at forming a large dredging company along with other cash-rich major ports. A consultant is being appointed to prepare a detailed project report for the foray.

Related Stories:
SCI may turn to Chinese shipyards
SCI undertakes big tonnage addition in Eleventh Plan

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Denying gratuity under Act is legal only if there is termination: HC

Bharti Airtel investing $200 m in Sri Lanka

Govt allows MMTC to import cement sans BIS mark

PM promises policies for rapid industrialisation

Increasing disconnect between economy and stock market

Technical snag hits RIL testing activity in Cauvery block

30,000 MW to be added using imported N-fuel

SCI mulls diversifying into shipbuilding

Mayawati’s latest — A different obsession for sugar sector

Iron ore prices may rise further

Flexibility needed in ‘linkage model’: Survey