Shipping Corp of India privatisation process moves a step closer

Shares in Shipping Corporation of India (SCI) leapt today following a report carried by Reuters that the government would press ahead with the long delayed privatisation process of the Indian flagship.

The government plans to invite financial bids once again for the privatisation of SCI in the middle of next month, Reuters reported, citing sources within the government.

As part of the long process towards privatisation, something that has been mooted for years, SCI had to divest itself of a number of non-core assets, which it managed to complete earlier this year.

New Delhi’s attempts to privatise the country’s flagship line have been going on for years with many bureaucratic hurdles.

The approval for strategic divestment of SCI was given by the Union Cabinet in November 2020. A call for expression of interest was floated in December same year for strategic divestment of India’s entire shareholding.

The government received multiple bids in March 2021, however, the demerger process was delayed.

The Indian flagship has a mixed fleet of 52 ships with an average age of 14 years. VesselsValue suggests SCI’s fleet is worth $1.745bn.