The government may consider offloading about 15 per cent stake in navratna public sector undertaking (PSU) Shipping Corporation of India (SCI), which is currently facing a cash crunch for its fleet-expansion plans. “We will examine the economic climate and then make a decision,” union minister for shipping G K Vasan said on Wednesday.

Shipping Corporation was considered for dilution of government stake even in the last UPA government but it could not take off due to opposition from the Left parties and poor market conditions.

“SCI’s financial health is a matter of concern and we are working towards improving it,” the minister added while addressing a press conference in New Delhi. The shipping ministry has also sought an additional line of credit for the company’s fleet expansion plan in the Budget 2009-10. The corporation has already placed orders for 30 ships this year with an estimated investment of $3.5 billion. The problem is that the usual sources of finance for ship purchase in Europe have dried after the meltdown. “We are hopeful that the finance ministry will consider our request,” secretary shipping APVN Sarma said at the same event.

Unveiling the ministry’s 100-day agenda, GK Vasan said that his ministry plans to award port development projects worth Rs 3,300 crore. This will augment cargo handling capacity at major Indian ports by 31.23 million tonnes in the next 100 days. In addition, the ministry plans to seek additional approvals from the cabinet for setting up of a mechanised iron ore handling facility at New Mangalore Port and multipurpose berths at Kandla. If approvals are got soon, these two could also be awarded over the next three months or so, the minister added.

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