The Shipping Corporation of India (SCI) would continue to be a national flag carrier after its privatisation and the government would have powers to requisition its entire fleet in case of an emergency, Disinvestment Minister Arun Shourie said today.
The company would be registered in India even though the buyer might be a foreign company, he said.
The Cabinet Committee on Disinvestment (CCD) had yesterday decided to remove the 49 per cent foreign direct investment (FDI) cap for the company and ask for fresh bids. The government is offering 51 per cent stake to a strategic buyer.
Also, Indian Oil Corporation will have to extend a purchase preference for oil tankers to SCI for two years after its divestment.
"There will be a call-and-put option in the transaction document," he said, adding that even without such equity participation the government would have powers to requisition SCI's entire fleet in case of national needs.
Earlier, foreign companies were allowed to retain only 25 per cent equity in SCI and that had prevented a large number of foreign shippers from participating in the disinvestment process, ministry officials said.
The CCD yesterday decided to defer divestment of 51 per cent government stake in SCI as the two bids received from Essar Shipping and Sterlite were both 'weak bids'.
The Cabinet felt the situation could be improved by removing the current 49 per cent FDI cap.
