The Shipping Corporation of India (SCI), established in 1961 through the merger of Eastern Shipping Corporation and Western Shipping Corporation, has evolved into the nation’s largest shipping company. Initially commencing operations with 19 vessels, SCI’s fleet has undergone fluctuations over the years. As of 2023, the fleet comprised 64 vessels, with 55 designated for overseas operations and nine for coastal services.
In November 2019, the Government of India approved the privatization of SCI by deciding to sell its entire 63.75% stake in the company. However, this process has encountered delays due to challenges in transferring non-core assets, such as the Shipping House and Maritime Training Institute in Mumbai, to a newly formed entity, Shipping Corporation of India Land and Assets Limited (SCILAL). These complications have postponed the strategic sale, with projections indicating a potential delay until the fiscal year 2025-2026.
Despite privatization delays, SCI has been proactive in enhancing its fleet capacity. The company has initiated plans to acquire up to six second-hand containerships, ranging from mid-size to ultra-large, aiming to bolster operations and regain market share. Additionally, SCI has received approval to establish a wholly-owned subsidiary at Gujarat International Finance Tec-City (GIFT City), reflecting its commitment to expanding its operational footprint.
In a broader policy shift, the Indian government has decided to put several privatization plans on hold, opting instead to invest in state-run enterprises. This decision affects multiple public sector units, including SCI, and is influenced by various factors, including opposition from relevant ministries.
In summary, while SCI continues to navigate the complexities of privatization and asset restructuring, it remains focused on strategic initiatives to enhance its fleet and operational capabilities in alignment with India’s maritime objectives.
