Govt to ship out 15% stake in SCI

New Delhi, Nov 17 | Updated: Nov 18 2005, 05:30am hrs
Government has decided to divest 15% of its stake in Shipping Corporation of India, minister of shipping T R Baalu said on Thursday.

SCI presently has 80.12% government equity and with this proposal materialising, the government equity will come down to around 65%, he said. The proposal has been put forth before the disinvestment department which would decide on the timing of the disinvestment, he said.

Out of 15% to be divested, 10% would be offered to employees, while the remaining 90% would be split in shares with Rs 5 each share, he said. When asked whether it was the ministrys own decision Mr Baalu said the disinvestment department had sought the comments of the shipping ministry on the matter to which he has agreed to diluting of 15% stake in the mini ratna.

Without divulging the amount the shipping ministry intends to raise from the disinvestment, joint secretary shipping Susheel Kumar told PTI, We have not set any target on quantum of money to be raised through the disinvestment proceeds. The disinvestment department would decide according to the current market valuation. The shipping ministrys nod was forwarded to the disinvestment ministry a month ago and the latters response was awaited, he said. Mr Kumar said the government was concerned on the slow rate of FDI in the shipping sector and pointed that perhaps taxes and berthing charges were disproportionate.

PTI

Shedding Weight

SCI currently has 80.12% government equity and with this proposal government equity will come to 65%
10% share will be offered to employees, remaining 90% will be split in shares with Rs 5 each share