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The Minister for Shipping, Road Transport & Highways, Mr T.R. Baalu, addressing the Economic Editors' Conference in the Capital on Thursday. - Ramesh Sharma

New Delhi , Nov. 17

THE Government has decided to revive the public sector disinvestment process by diluting its stake by 15 per cent in Shipping Corporation of India (SCI), a profit-making `mini-ratna' company.

At present, the Government holds 80.12 per cent stake in the shipping company, institutional investors another 13.45 per cent, private corporate bodies 1.89 per cent, Indian public 4.39 per cent and NRIs 0.15 per cent. SCI recorded a net profit of Rs 1,420 crore for 2004-05, the highest since its inception.

"Out of the 15 per cent, 10 per cent shares would be offered to the company's employees. We have also agreed to split the SCI stock to Rs 5 from the present Rs 10," the Minister for Shipping, Road Transport and Highways, Mr T.R. Baalu, announced at the Economic Editors' conference here today.

However, Mr Baalu declined to comment on the likely timeframe for the divestment or the amount the Government expects to garner. "We have provided our inputs to the Department of Divestment. They would further decide," he said.

Persuading the Left: The proposal for disinvestment in SCI had gained momentum in the recent past, but was set aside after the Left parties strongly opposed the divestment move in Bharat Heavy Electricals Ltd (BHEL), a profit-making `Navratna' company. The Left's opposition resulted in putting the entire disinvestment exercise on hold and it was fairly recently that the subject of off-loading small stakes in profit-making non-Navratna companies had been broached with the Left.

During the initial move to divest in SCI, the Shipping Ministry was of the view that the Government should either have 75 per cent stake in SCI or reduce it to 51 per cent. This time, however, it has agreed for 15 per cent dilution.

Plans to acquire 26 vessels: At the Economic Editors' conference, Mr Baalu also said that SCI plans to acquire 26 vessels at Rs 5,209 crore.

This includes two cape-size vessels valued at about Rs 550 crore, six handymax for Rs 818 crore, two container-vessels for Rs 528 crore and six product tankers for Rs 972 crore.

Moreover, the Shipping Ministry would also seek block approval from the Cabinet for acquisition of 10 vessels for SCI at Rs 2,341 crore.

"The proposal is yet to be sent to the Cabinet," said Mr Susheel Kumar, Joint Secretary, Department of Shipping.

"We are seeking in-principle approvals from the Cabinet and then we will take up purchase of ships on a case-by-case basis," Mr Baalu said.

National highway projects: On the status of Model Concession Agreement for the build, operate, transfer projects of national highways, Mr Baalu said, "It is almost finalised. There are very minor issues to be sorted out.

"We would finalise the agreement in 15 days or maximum of one month."

However, he did not elaborate further.

LNG transportation: On the issue of LNG (liquefied natural gas) transportation, Mr Baalu said, "The Commerce Ministry is to take a (final) view.

"We have insisted that LNG imports should be done on Indian flag vessels and on f.o.b. (freight on board) basis. And technology should be transferred to the Indian company within five years."

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