 "Iran not keen to dissolve Irano-Hind, India mulls exit routes")
Senior government officials told Business Standard Iran wasn't keen to dissolve the company and wanted to continue doing business, with or without Shipping Corporation of India (SCI), its joint venture partner.
India is considering the option of exiting the company by selling its stake. "We cannot liquidate the company and then split the assets. Now that sanctions are also being relaxed, we might just divest our stake and let Iran continue alone," said a senior official.
At a recent meeting on the matter, several points of conflict between Iranian and Indian law, in terms of dissolution of the company, came up. "Terminating a joint venture is a painful process. The only reason we decided to end it was the UN (United Nations) sanctions," said Arun Kumar Gupta, chairman, SCI. He refused to provide further details on the matter.
Irano Hind has seven ships, including tankers and bulk carriers of 0.66 million deadweight tonnage. SCI was expected to get the larger share of the liabilities and, therefore, the assets. The process of division of assets and liabilities was to start with the appointment of a liquidator. Last year, the Cabinet had approved the winding up of the joint venture.
Irano Hind was set up in 1975 after former prime minister Indira Gandhi's visit to Tehran, as a mark of friendship between the two nations. SCI owns 49 per cent stake in the venture, while Islamic Republic of Iran Shipping Lines holds the rest. SCI had invested about Rs 40 lakh while signing the agreement for 49 per cent equity. Though SCI's profits from the joint venture aren't known, it has been able to earn much more than investment.
Besides boosting economic ties, the venture was also aimed at reducing transportation costs and time between India and Russia by creating a multi-modal transportation system via Iran.