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Shipping Corp struggles to improve its financials

Shipping Corp struggles to improve its financials
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To improve its financial status, the Shipping Corporation of India (SCI) has signed several MoUs with its public sector undertaking peers such as Coal India, ONGC, SAIL and Gail India. SCI has been striving to take advantage of the pacts. For now, its financials continue to be under stress. SCI is yet to form joint ventures with Coal India and Oil and Natural Gas Corporation which could have provided the firm with assured cargo and revenues. SCI has not acquired vessels yet for operation as per a joint venture agreement signed with the Steel Authority of India in 2010.

Its talks with National Thermal Power Corporation (NTPC) to transport cargo also did not yield results. SCI Director Sunil Thapar said that the shipping corporation will form joint ventures with companies only if they can add value.

With SAIL, it is in the process of acquiring vessels while with NTPC the talks did not yield results, Thapar added. Sunil Thapar is expected to take over as the chairman of the company soon.

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