The Hindu Business Line : SCI to raise $2 b thru foreign borrowings

New Delhi, Aug. 10 Shipping Corporation of India (SCI) plans to raise $2 billion through external commercial borrowing (ECBs) over the next five years for funding its vessel acquisition plans.

“Over the next five years, we are likely to raise about $2 billion through ECBs,” said Mr B.K. Mandal, Director (Finance), SCI, at a conference held here today.

However, these fund raising requirements are likely to come up next year onwards since the initial payments would be serviced through internal accruals of SCI.

SCI plans to invest about $3 billion to add four million dead weight tonnage during the Eleventh Plan which kicked off from April 1, 2007.

Aframax buys

SCI today signed a contract with the Korea-based Hyundai Heavy Industries for acquiring four Aframax crude oil tankers and two LR-II (long range-II) size product tankers.

“The total value of these six vessels is $426.64 million (Rs 1,762 crore),” said Mr Umesh C. Grover, Director (Technical and Offshore services). These vessels would be delivered during 2010-11. This is the largest ever ship-building contract signed by SCI with any shipyard since its inception in 1961.

These orders are a part of the block acquisition of 12 vessels for which SCI had received a Cabinet approval recently.

Two other projects of the block are four Panamax bulk carriers and two 5,000 TEU container vessels. While SCI is processing the orders for the four bulk carriers, the bids for two container vessels would be floated soon.

With these orders, SCI’s order-book has now swelled to 18 vessels that include two very large crude carriers (VLCCs), two 4,400 TEU container vessels, six LR-I and two MR product tankers.

Manpower shortage

Talking about the manpower shortage in the domestic shipping firms, Mr Kailash Gupta, Director (Personnel), SCI, pointed out that two-thirds of Indian sea-farers are serving foreign flag vessels.

On the proposed mega dredging alliance to be formed by various public sector units, Mr S. Hajara, Chairman and Managing Director, SCI, said that they hope to firm up the plans by this year-end.

“We would appoint a consultant to prepare the detailed project report soon,” he said, adding that the report has to be submitted in three to four months.

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