The Hindu Business Line : Baalu not for SCI disinvestment

THE Minister for Shipping, Road Transport & Highways, Mr T.R. Baalu, has said that he is not in favour of disinvestment in the Shipping Corporation of India (SCI).

Speaking at the Economic Editors' Conference here, Mr Baalu said SCI had notched up a record post tax profit of Rs 528.63 crore during the first half of the current fiscal.

"SCI is expected to end the year with a net profit of over Rs 1,000 crore. There is no necessity for disinvestment in SCI," he said.

The minister said he would approach the Finance Ministry seeking a grant of Rs 400 crore for implementing the Rs 2,000-crore Sethusamudram Ship Canal Project. The Government has incorporated a special purpose vehicle - Sethusamudram Corporation Ltd - with an investment of Rs 5 crore.

"We have already tied up Rs 250 crore towards equity of the project with contributions from the major ports of Tuticorin, Chennai, Paradip, Visakhapatnam and Ennore as well as SCI and Dredging Corporation of India. Another Rs 150 crore is expected to come from other beneficiaries. The Finance Minister may support me by giving a grant of Rs 400 crore. The balance would be debt," said Mr Baalu.

To remove any misgivings on the LNG shipping policy notified by the Director General of Shipping, the minister said the matter has been taken up with the Commerce Ministry for making free-on-board imports mandatory for LNG project promoters.

"This will ensure that only Indian flag ships are engaged in the transportation of LNG into the country for promoting energy security of the country," he said.

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