A Parliamentary panel has recommended that Shipping Corporation of India (SCI) buy fuel-efficient ships, replacing the old stock.
"If the international market situations are viable, they may go for purchasing new fuel-efficient vessels in place of the old ones," a parliamentary standing committee on Transport, headed by Kanwar Deep Singh said in its latest report.
The largest domestic shipliner has a fleet of 69 vessels of which 17 are bulk carriers, 16 crude oil tankers and 14 product tankers, most of which are old.
"The committee understands that some of the ships owned by SCI are aged and needed to be phased out," it said.
The panel said SCI could make a turnaround after sustained losses for three consecutive years and registered a net profit of Rs 384.41 crore in 2015-16.
"During 2014-15, the company has revised the useful life of their vessels (fleet)...The depreciation on these assets which was earlier being provided under the 'written down value' method is now being provided for as per 'straight line method' over the useful life of assets," the company said while declaring financial results for 2014-15.
An array of steps have been taken to cut down expenditure in the grim shipping scenario worldwide, the panel said.
SCI had registered losses at a time when the shipping industry was struggling to come out of its unprecedented long recession and the outlook for the industry was progressively deteriorating, the committee said.
Thus, measures for improvement in operational efficiency and cost reduction were taken, like reduction in container inventory port wise, etc.
"Further plans include focus on coastal and near coastal trade, expansion of break bulk and project cargo business and optimisation of equipment inventory.
The SCI was established in 1961, by the amalgamation of Eastern Shipping Corporation and Western Shipping Corporation.
It owns and operates around one-third of the Indian tonnage, and has operating interests in practically all areas of the shipping business and servicing.
Apart from being the largest shipping company in India, SCI exclusively operates in break-bulk services, international container services, liquid/dry bulk services, offshore services, passenger services.
