The Hindu Business Line : Govt okays SCI purchase of crude carriers for Rs 1,136 cr

THE Government today approved purchase of two very large crude carriers (VLCCs) at a total cost of Rs 1,136.08 crore, which would augment Shipping Corporation of India's (SCI) crude oil tanker tonnage and help meet the increased demand for crude oil transportation in the coming years. The acquisition process is likely to be completed within 36-47 months.

"Each carrier, with a capacity of 3,00,000 dead weight tonne, is priced at Rs 568.04 crore ($129.1 million at a rate of Rs 44 a dollar).

The Cabinet Committee on Economic Affairs has also allowed the SCI to avail itself of external financing to the extent of 80 per cent of contract price of each vessel," said the Union Finance Minister, Mr P. Chidambaram.

He was speaking to newspersons after the meeting. For the remaining 20 per cent, SCI has to generate funds from internal resources.

The loan could be sourced either from the domestic market or the international market, he said.

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