SCI divestment by October 2003

Divestment of Shipping Corporation of India is likely to take place by October 2003 as per the schedule, Lok Sabha was informed on Wednesday.

SCI had recently placed order for building of Very Large Crude Oil Carriers at Hyundai Shipyard, South Korea, and is in the process of signing contract for building one Aframax crude oil tanker at Cochin shipyard, Minister of Commerce and Law Arun Jaitley said in written reply to a question.

He said both the acquisition proposals were initiated before the process of divestment started and as per SCI's business plan.

The impact of procurement of new ships by SCI will be positive, which will also enhance the profitability of the company, he said.

The government would not provide any budgetary support for the acquisition and it would be funded by the company through its internal resources and borrowings from commercial market, Jaitely said.