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A year after the government announced the end of 39-year Indo-Iranian venture Irano Hind Shipping Company, the two countries are still debating the issue.
Government officials said Iran wasn't keen to dissolve it and wanted to continue with or without the venture partner, Shipping Corporation of India.
India is considering exiting 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 and let Iran continue," said an official.
At a recent meeting, several points of conflict between the Iranian and Indian law, in terms of dissolution, came up. "Terminating a joint venture is painful. The only reason we decided to end it was the UN (United Nations) sanctions," said Chairman Arun Kumar Gupta. He refused to give further details.
Irano Hind has seven ships, including tankers and bulk carriers of 0.66 million deadweight tonnage. The 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 venture.
Irano Hind was set up in 1975 after former prime minister Indira Gandhi's visit to Teheran, as a mark of friendship between the two. The SCI owns 49 per cent stake, while Islamic Republic of Iran Shipping Lines holds the rest. The SCI had invested Rs 40 lakh while signing the agreement for 49 per cent equity. Though its profits from the venture aren't known, it has been able to earn much more than the 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.
