India May Invite Bids For Shipping Corp Privatisation In January-March 2023

The government is likely to invite financial bids for privatisation of state-owned Shipping Corporation of India in the March quarter, an official said.

"The demerger of non-core and land assets of Shipping Corporation is at an advanced stage. The process is expected to be over in about three months, after which financial bids will be invited," the official told PTI.

The financial bids from potential investors are expected in the January-March quarter, the official said.

The board of Shipping Corp. had in May this year approved an updated demerger scheme to hive off the company's non-core assets -- including Shipping House, Mumbai, and Maritime Training Institute, Powai -- to Shipping Corporation of India Land and Assets Ltd.

As on March 31, 2022, the value of non-core assets stood at Rs 2,392 crore.

The government had in March 2021 received multiple bids for Shipping Corp.'s privatisation, but the demerger process got delayed.

The Department of Investment and Public Asset Management, or DIPAM, had in December 2020 invited expressions of interest for strategic sale of the government's entire 63.75% stake in Shipping Corp., along with the transfer of management. The move came after the Union Cabinet gave its in-principle approval for the divestment.

The central government has set itself a disinvestment target of Rs 65,000 crore in 2022-23. So far, Rs 24,544 crore has been mobilised.