Financial mismanagement may lead Shipping Corporation of India to go the Air India way, fears a Parliamentary Panel.
Shipping Corporation of India (SCI) should review its already placed fleet acquisition orders as it faces increasing liabilities, a Department-related Parliamentary Standing Committee on Transport, Tourism and Culture, observed in its demands for grants report.
“The Committee fears that SCI may go the Air India way in case of financial (mis)management,” it said. SCI has about 15 vessels, already on order, which are yet to be delivered.
Loan liability of SCI has been continuously increasing over the last few years. Compared to the loan liability Rs 7,297 crore in fiscal 2011-12, it had increased to Rs 8,727.95 crore in the first three quarters of the current fiscal, ending December 2012.
The total liabilities may overtake the assets of the company within a short span of time, the committee added.
While taking note of the fact that Indian shipping firms are facing turbulent times on the back of general economic downturn, the Committee has said that “clear vision, appropriate strategy and professionalism can help this Navratna public sector unit get back to its financial health”.
SCI, with a fleet of 80 vessels, accounts for a third of total tonnage held by Indian ships.