Government steps up privatization of shipping corporation, Global EOI invited

The last date for filing a Letter of Interest (EOI) is 13 February. The investee company may bid alone or as a consortium of several companies. SCIL has a market value of about Rs 4,000 crore based on current share prices.

consortium of several companies

The Government has invited a Global Interest Letter (EOI) to sell a 63.75 per cent stake in state-owned Shipping Corporation of India (SCIL) Limited. Under this sale (SCIL) management will also get control over the stake-taking company.

This means that SCIL will be privatized, not just disinvestment. The government’s attempt to hand over the company’s private hands has been delayed due to the Corona crisis. 

In a statement on Tuesday, the Finance Ministry said that the last date for filing a letter of interest is 13 February. The investee company may bid alone or as a consortium of several companies. Based on the current share prices (SCIL has a market value of about Rs 4,000 crore. Its shares were trading around 3 per cent on Tuesday, up 3 per cent. 

The approval was received last year

It is to be noted that in November last year, the Cabinet Committee on Economic Affairs gave in-principle approval to sell the Shipping Corporation. But due to Corona crisis, the process of selling it could not proceed.