Navaratna status sought for SCI

Chairman of the Parliamentary Standing Committee on Tourism, Transport and Culture Sitaram Yechury has written to the government seeking Navaratna status for the Shipping Corporation of India (SCI) to impart it greater authority in decision making.

This comes about two months after Committee members, who were in Mumbai last November as part of their study tour, were briefed by SCI officials about the difficulties faced by the corporation, which presently enjoys mini-Navaratna status.

In case of mini-Navaratnas, incurring of capital expenditure on new projects, modernisation and purchase of equipment without prior approval of the government is limited to Rs 500 crore; there is no such limit in case of Navaratnas.

In their presentation to the standing committee, SCI officials had argued that the delay in getting approval for expenditures under various categories like in the acquisition of vessels and in meeting commercial price offers received from shipyards "" main source of SCI commercial transactions "" is disturbing the business cycle of the company.

Raising all these issues in a letter to Union Minister of Transport and Shipping TR Balu last week, Yechury sought his intervention in getting Navaratna status for the SCI.

Citing his discussions with SCI officials, he said the lack of Navaratna status was impairing its ability to form joint ventures to maximise its business transactions.

To increase the controlled tonnage, forming joint venture with various companies abroad is necessary. As a mini-navaratna company, the SCI is allowed to set up joint ventures in India only.

To form joint ventures abroad, the company needs to approach government for necessary approvals which causes loss of time and opportunities, according to the letter written by Yechury.