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Shipping Corp board approves changes in demerger scheme for non-core assets
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The government is likely to invite financial bids for privatisation of state-owned Shipping Corporation of India (SCI) in the March quarter, an official said.
"The demerger of non-core and land assets of Shipping Corporation is at an advanced stage. The process is expected to be over in about three months' time, after which financial bids will be invited," the official told PTI.
The financial bids from potential investors are expected in the January-March quarter, the official added.
In May, the board of Shipping Corp had approved an updated demerger scheme for hiving off the non-core assets of SCI to Shipping Corporation of India Land and Assets Ltd (SCILAL) including Shipping House, Mumbai and MTI (Maritime Training Institute), Powai to complete the process of de-merging all the non-core assets to the new company SCILAL.
As per the balance sheet of SCI, the value of non-core assets held for demerger as of March 31, 2022, stood at Rs 2,392 crore.
In March 2021, the government had received multiple bids for privatisation of Shipping Corporation of India. However, the demerger process got delayed.
The Department of Investment and Public Asset Management (DIPAM) in December 2020, had invited expressions of interest (EoI) for strategic disinvestment of its entire stake of 63.75 per cent in Shipping Corp of India, along with the transfer of management.
The Cabinet, in November in 2020, had given in-principle approval for strategic divestment of Shipping Corp.
The government has budgeted to garner Rs 65,000 crore from Central Public Sector Enterprise (CPSE) disinvestment in the ongoing 2022-23 fiscal. So far, Rs 24,544 crore has been mobilised through CPSE disinvestment.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
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First Published: Tue, August 30 2022. 12:26 IST
