Business

Price bids for SCI in August likely

By Our Special Correspondent

NEW DELHI JUNE 21 Price bids for selling the Government's 51 per cent stake in the Shipping Corporation of India (SCI) are likely to be invited in August and the entire privatisation process may be completed in three to four months.

This was indicated during a press conference here today by the Union Minister for Shipping, Ved Parkash Goyal. He said the companies in race for acquiring the government stake had completed due diligence and "we expect to wrap up the entire privatisation in next three to four months.''

Refusing to say anything further as the disinvestment exercise was being handled by the Disinvestment Ministry, source said that six companies stayed in the fray for SCI, price bids for privatisation of which are likely to be invited in August.

These companies, according to official sources, are Essar Shipping, Great Eastern Shipping Company (Gesco), Iffoc-Kribhco, Aban Loyd-Qatar Shipping Company, Malaysia International Shipping Corporation (MISC) and Sterlite Industries. Sources said the security clearance of the bidders remained while foreign bidders have been asked to float a special purpose vehicle (SPV) incorporated in India which should be owned and majority-controlled by Indians.

This would facilitate that foreign participation in SCI through the SPV would not exceed 25 per cent of the paid-up capital of the company, sources said. The acquisition of further 20 per cent shares from the stock market through an open offer would also be through the SPV only. At present, the Government holds 80.12 per cent stake in SCI out of which 51 per cent is being divested to a strategic partner.

About the Sethusamudram Ship Canal Project, Mr. Goyal said Sri Lanka has had no reservation and wa keen on early completion of this project.

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