The Indian government is gearing up to privatize the Shipping Corp of India Ltd (SCI) and launch a financial bid process for the same next month. Two government officials who interacted with Reuters told them that the decision to sell the state-run business is followed by a delay of years.
The Indian government, led by Prime Minister Narendra Modi, has previously announced plans to privatise a number of state-run businesses in 2019, including by selling its own part in Shipping Corp of India Ltd. (SCI). These initiatives, however, had previously been hindered by regulatory hurdles. Before the government could move on with the sale of its 63.75% ownership in Shipping Corp of India Ltd (SCI), which is involved in the operation of bulk carriers and crude oil tankers, it had to separate its non-core assets.
Late in February, SCI received regulatory approval, and last month, it effectively spun off its non-core assets. Reportedly, one of the government officials said that the government intended to finish the listing process quickly and that the demerged business, known as SCI Land Assets Ltd, is expected to be listed by April 23.
As per the reports, the government now plans to launch a financial bid process for SCI, which controls and owns around one-third of all tonnage in India, by the middle of May. Because the strategy is still secret, the officials did not want their names to be used.
A panel led by India’s cabinet secretary will make a final decision on April 14, they claimed.
The sale of the government’s 31% interest in Container Corporation of India Ltd, which has been postponed since 2020, would also be taken into consideration by a panel, according to one of the government officials.
An email asking for feedback did not obtain an immediate response from the finance ministry.
