The Hindu Business Line : SCI gets Govt nod for fleet expansion

EVEN as its disinvestment programme hangs in balance, Shipping Corporation of India (SCI) has got the Central go ahead to implement its capital expenditure proposal for fleet expansion.

The Government had frozen SCI's fleet expansion programme in view of its proposed disinvestment, as it may affect the interests of its post-disinvestment owners. SCI had, however, sought permission from the Government to go ahead with its fleet expansion to fully capitalise on the buoyant freight market.

Mr Shatrughan Sinha, the Union Minister of Shipping, told presspersons here on Sunday that as the uptrend in the freight market was expected to continue, SCI has been allowed to go ahead with its fleet acquisition plans. He, however, made it clear that SCI's disinvestment programme was still on.

The decision assumes significance as SCI has not been able to make full capital out of the freight market boom, due to this restriction. The company had, in fact, drawn up an ambitious capital expenditure programme involving an investment of $1 billion to acquire 29 vessels during the Tenth Plan.

Also, SCI has to replace 25 to 30 per cent of its tankers in the course of the next few years.

The Minister said the Government planned to come out with a new and comprehensive port land use policy that was aimed at making better utilisation of the port lands through lease or rent.

A Committee headed by the Chairman of Jawaharlal Nehru Port, Mr Ravi Budhiraja, had gone into the issue of port land use policy and had recently submitted its recommendations.

On the Sagarmala project, Mr Sinha said the Shipping Ministry had recently made a presentation to the Prime Minister and a draft programme would be shortly announced.

As part of this programme, the Shipping Ministry has decided to give a thrust to inland water development by implementing fixed schedules on the Patna-Haldia inland waterway, he said, adding that efforts were on to ensure that vessels could ply on the three inland waterways for almost throughout the year by maintaining the drafts.

Mr Sinha said coastal shipping was also being taken up by the Ministry on a priority basis.

A separate Coastal Shipping Fund has been created for the purpose.