Government to invite bids for privatisation of Shipping Corp in May: Report
Written by Sanjay Kumar
News Highlights
- The government is reportedly planning to invite financial bids for the privatisation of Shipping Corp of India (SCI) next month.
- The plan is yet to be made public.
- The final decision, however, will be taken on April 14 by a panel headed by the cabinet secretary.
The Indian government is set to invite financial bids for the privatisation of the Shipping Corp of India Ltd (SCI) next month. This move comes after years of delays in selling the state-run company, according to two government officials who spoke to Reuters.
In 2019, Prime Minister Narendra Modi announced plans to privatize several state-run companies, including SCI. However, regulatory delays had previously stalled these efforts.
SCI had to separate its non-core assets before the government could proceed with the sale of its 63.75% stake.
After receiving regulatory approval in late February, SCI successfully completed the spinoff of its non-core assets last month. The resulting demerged entity, known as SCI Land Assets Ltd, is slated to be listed before April 23, according to one of the government officials, who also stated that the government plans to complete the listing process soon.
SCI owns and operates approximately one-third of India’s total tonnage, and the government aims to invite financial bids for its sale by mid-May, said the two officials. However, they did not want to be named as the plan is not yet public.
A panel led by India’s cabinet secretary will make a final decision on April 14. One of the government officials also mentioned that the panel will consider inviting initial bids for selling the government’s 31% stake in Container Corporation of India Ltd, which has been delayed since 2020.
The finance ministry did not immediately respond to an email seeking comment.
FAQ
01. What is the Shipping Corp of India Ltd (SCI)?
The Shipping Corp of India Ltd (SCI) is a state-run company that engages in the operation of bulk carriers and crude oil tankers.
02. What is the Indian government planning to do with SCI?
The Indian government is reportedly planning to invite financial bids for the privatisation of SCI next month.
03. Why has there been a delay in selling SCI?
There have been years of delay in selling SCI due to regulatory issues.
04. Who announced plans to privatize several state-run companies in India in 2019?
Prime Minister Narendra Modi announced plans to privatize several state-run companies in India in 2019.
05. What is SCI Land Assets Ltd?
SCI Land Assets Ltd is a new company that was formed after SCI completed the spinoff of its non-core assets.
06. What percentage of India’s total tonnage does SCI own and operate?
SCI owns and operates around one-third of India’s total tonnage.
07. Who will make a final decision on SCI’s privatisation?
A panel led by India’s cabinet secretary will make a final decision on SCI’s privatisation on April 14.
Must Read:-
- Top 10 Largest Oceans and Seas in the World
- Top 10 automobile companies in India 2023
- Top 10 Electrical Companies in India 2023
- Top 10 Real Estate Companies in India-2023
- Top 10 most awaited & upcoming Hindi web series 2023-24
- Top 10 Clothing Brands in India 2023
- Top 10 best cultures in the world-2023
- Top 10 best country to work and live in 2023
- Top 10 best country for education 2023
- Top 10 Most Followed Celebrities on Instagram 2023
- The Inspiring Success Story of Bear Grylls
- Top 10 Business Coaches in The World to Guide Entrepreneurs In 2023
- Top 10 movies based on True Stories you must watch before you die
- Top 10 Best Online Doctor Consultation Apps in USA
