Shipping Corporation of India disinvestment: The government is likely to invite financial bids for the Shipping Corporation of India (SCI) by September this year. Giving this information to PTI, sources said that the financial bids will be called after the process of liquidation of non-core assets of the company is completed. As part of the strategic sale process, the government is liquidating some non-core assets of SCI, including the shipping house and training institute.
What is the plan?
“The process of demerger of non-core assets is time-consuming. We will be in a position to call for financial bids in three-four months.” In a meeting of the Board of Directors of Shipping Corporation held last week, the company’s non-core assets were transferred to Shipping Corporation of India Land and Assets Ltd. (SCILAL) has been approved for the updated plan of transfer. These include Shipping House in Mumbai and Maritime Training Institute in Powai. As per the books of SCI, the value of his non-core assets stood at Rs 2,392 crore as on March 31, 2022.
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was approved in August
SCI’s board of directors had in August last year approved the company’s plan to liquidate non-core assets. After that SCILAL was formed in November, 2021. The Ministry of Ports, Shipping and Waterways has asked SCI in April 2022 to expedite the process of demerger of non-core assets. In March last year, the government had received several bids for the privatization of the shipping corporation.
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Target to raise Rs 65,000 crore
In December, 2020, the Department of Investment and Public Asset Management (DIPAM) had invited Expression of Interest (EOI) for sale of the entire 63.75 per cent stake of the government in the company. Along with the stake sale, the management of the company is also to be transferred. The Union Cabinet in November 2020 gave in-principle approval for the strategic disinvestment of Shipping Corporation. The privatization of Shipping Corporation is now expected to be completed in the current financial year. The government has set a target of raising Rs 65,000 crore from disinvestment of public sector undertakings in 2022-23.