Shipping Corp Privatisation Off The Table? Govt Reassesses Amid Global Geopolitical Shifts
The government’s plan to privatise Shipping Corporation of India (SCI) may be put on hold amid the evolving global geopolitical situation, with an increasing focus on strengthening the state-run carrier to safeguard India’s trade and energy security, official sources told NDTV Profit.
Background of SCI Privatisation
The Ministry of Ports, Shipping and Waterways is said to be re-evaluating its earlier plan to offload its 63.75% stake in SCI, a process initiated in 2020 under the strategic disinvestment programme. The privatisation process, which involved the demerger of core and non-core assets to enable stake sale, has faced multiple delays due to asset transfer issues and administrative hurdles, deterring potential investors.
Global Geopolitical Shifts and India’s Trade Security
Officials said the government now sees a larger role for SCI in navigating disruptions in global trade and supply chains, and in reducing India’s dependence on foreign vessels. “Given the current volatility in global routes and energy flows, capacity expansion has become a strategic imperative,” one official noted. This shift in approach is crucial for Indian investors to understand, as it may impact their investment decisions in the shipping sector.
Capital Infusion Plans for SCI
Shipping Secretary Vijay Kumar, in a recent interaction with NDTV Profit, outlined the government’s capital infusion plans to boost SCI’s capacity. “The focus is on demand aggregation to strengthen shipping demand. SCI is signing MoUs with major cargo players under a joint venture model, where the corporation will act as an equity partner. A dedicated Maritime Development Fund will infuse additional capital to support fleet expansion and increase tonnage. The model is aimed at scaling up SCI’s fleet and driving its ambitious growth plan,” he had said.
Implications for Indian Investors
With this shift in approach, the government appears to be prioritising the revival and strengthening of SCI as a strategic national carrier rather than pursuing its privatisation in the near term. This move may have significant implications for Indian investors, who should consider the potential impact on their investments in the stock market. Investors should also keep an eye on the Nifty today and Sensex news to stay updated on the latest market trends.
Conclusion
In conclusion, the government’s decision to put the SCI privatisation on hold is a significant development for Indian investors. As the global geopolitical situation continues to evolve, it is essential for investors to stay informed about the latest developments in the Indian stock market and their potential impact on investment decisions.
