According to an official, the government will likely invite financial bids for the privatisation of the state-owned Shipping Corporation of India (SCI) in the March quarter. “The demerger of Shipping Corporation’s non-core and land assets is nearing completion.” The process is expected to be completed in three months, after which financial bids will be solicited.
Potential investor financial bids are expected in the January-March quarter, according to the official. In May, the Shipping Corporation board of directors approved an updated demerger scheme for transferring SCI’s non-core assets 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 transferring all non-core assets to the new company SCILAL.
According to SCI’s balance sheet, the value of non-core assets held for demerger as of March 31, 2022, was Rs 2,392 crore. The government received multiple bids for the privatisation of the Shipping Corporation of India in March 2021. However, the demerger process was pushed back.
In December 2020, the Department of Investment and Public Asset Management (DIPAM) invited expressions of interest (EoI) for the strategic disinvestment of its entire 63.75% stake in Shipping Corp of India, as well as the transfer of management. In November 2020, the Cabinet gave in-principle approval to the strategic divestment of Shipping Corp. The government has budgeted Rs 65,000 crore for Central Public Sector Enterprise (CPSE) disinvestment in the current fiscal year 2022-23. So far, CPSE disinvestment has generated Rs 24,544 crore.