Sources from the union shipping ministry informed that the discontinuation of the joint venture between
Shipping Corporation of India (SCI) and Irano Hind Shipping Company would add seven ships to the former’s fleet.
SCI will get the seven vessels as it agreed to repay the loans of the joint venture. It is learnt that the joint venture was having a debt of $88 million.
The joint venture firm, Irano Hind Shipping Company (IHSC), was formed in 1975 by Iran’s former Shah Reza Pahlavi and the then Prime Minister Indira Gandhi as a bond of friendship. While IRISL holds 51 per cent stake in the joint venture, SCI has 49 per cent stake.
The seven ships will be registered under Indian flag once hand over takes place. The joint venture of both the firms was dissolved by the cabinet recently following the imposition of sanctions by western countries on Iran.
Shipping ministry sources also informed that the Iranian counterpart was keen on breaking the JV following sanctions.
The assets of the venture includes four crude oil tankers and four dry bulk carriers. According to the recent annual report of SCI, during the Iranian ear ended March 19, 2012, the JV earned net profit after tax of Iranian Riyals 430,026 million ($35.08 million).
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