Centre for CIWTC partial selloff

The Centre has decided to go ahead with its decision to disinvest a part of the loss-making Central Inland Water Transport Corporation (CIWTC) and close down the other unit though the PSU has managed a turnaround of sorts.

CIWTC has two operating divisions: river service division (RSD) and Rajabagan Dockyard (RBD).

The Centre has initiated the disinvestment of RSD which is in the business transportation of cargo through inland waterways by barges. In case of RBD, which repairs and construct IWT vessels, the Centre has asked CIWTC to sell the unit with manpower or close it down.

Inland water transport had been identified as one of the focus area under the Centre's Sagarmala Project. CIWTC as the only public sector company offering inland water transport service and also constructing and repairing IWT vessels, was hoping for a revival package.

Few takers were likely to emerge for RBD which has over 500, mostly aged, people on the rolls.

"The assets should fetch anywhere between Rs 80-100 crore but nobody will take on the workforce," sources warned.

Shipbuilding industry worldwide was experiencing boom with international trade on the rise. Shipbuilding units in China and Korea reportedly had full order books till 2008.

CIWTC was trying to rope in a German outfit to build ships. The foreign company would bring in technology and design to build ships. RBD was negotiating to build a 8,500 tonne oil tanker as well.

RBD had cash loss of Rs 8.40 crore in the fiscal 2000-1 and loss of Rs 4.80 crore in the last fiscal. Capacity utilisation was at 75-80 per cent and sub-contracting in the last three years had improved efficiency.

RBD and RSD were well placed to cash in on the emerging IWT market. Coal, dry fish, shredded paper and stone boulders have been sent to Bangladesh through barges.