The Hindu Business Line : SCI may not see sell-off hurdles

WHILE the Supreme Court judgment in the disinvestment of HPCL and BPCL has cast its shadow on the Government's privatisation programme, it is unlikely to affect the sale of Shipping Corporation of India (SCI), which was incorporated under the Companies Act, Government officials said.

The disinvestment of SCI is currently at a well-advanced stage.

"Since SCI was not incorporated under an Act of Parliament, the Supreme Court order asking the Government to seek Parliament permission for sale of shares of HPCL and BPCL should not be applicable to it," said Mr D.T. Joseph, Union Shipping Secretary.

The same view was expressed by Mr P.K. Srivastava, Chairman, SCI. However, he added that his view is based on reports of the Supreme Court judgment rather than a full reading of the judgment itself.

Essar Shipping the leading contender for the 51 per cent stake to be sold by the Government in SCI, also has the same assessment of the situation, said officials with the company.

However, shipping circles have expressed fear that political opposition to disinvestment in general, deriving strength from the Court order, might lead to delay in the sale of SCI as well.

Officials at SBI Caps, one of the advisors to the Government on the SCI sale, declined to comment on the impact, if any, of the Court judgment on the sale. "We need time to take a view on this," said an official with the merchant banker.

Meanwhile, it is learnt that the Disinvestment Ministry had, much before the Tuesday's judgment, fixed October 20 as the date for submission of price bids for SCI.

Besides Essar, two other bidders, Videocon and Sterlite, are in the race for SCI.

It is learnt that Essar has already embarked on physical inspection of SCI vessels.

A board meeting of SCI is scheduled for Thursday.

The agenda for the meeting could not be confirmed, although the company had, last week, set the record date as October 10 for declaration of an interim dividend.

Officials would not confirm whether Thursday's meeting is for considering the interim dividend or for some other purpose.

There is some expectation in the market that a bumper interim dividend, on the lines of that of VSNL prior to its disinvestment, is on the cards.

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