The Indian government is kick-starting the privatization of the Shipping Corp of India Ltd. The government has invited financial bids for the privatisation next month-a move that comes after years of delay in selling the state-run company, two government officials told Reuters.
In 2019, the Indian government, under the leadership of Prime Minister Narendra Modi, announced plans to privatise several state-run companies including the sale of its stake in Shipping Corp of India Ltd (SCI). However, regulatory delays had previously stalled these efforts.
Engaged in the operation of bulk carriers and crude oil tankers, SCI had to separate its non-core assets before the government could proceed with the sale of its 63.75% stake.
SCI completed the spinoff of its non-core assets last month only after receiving regulatory approval in late February.
According to one of the government officials SCI Land Assets Ltd, is slated to be listed before April 23,he also stated that the government plans to complete the listing process soon.
Now, the government is looking to invite financial bids for SCI, which owns and operates around one-third of India’s total tonnage, by mid-May, the officials said on promise of anonymity.
Further they added, that a final decision is yet to be taken on April 14 by a panel headed by India’s cabinet secretary.
Initial bids for the sale of 31% stake of Container Corporation of India Ltd, which is being delayed since 2020 will also be invited by a panel, said one of the officials.