SCI Chairman and Managing Director A.K Gupta told India’s Cogencis that a decision has been taken although details are still being worked out, adding that the Iranian commerce ministry had raised “some issues” on division of fleet because of some local laws.
The joint venture named Irano-Hind Shipping Co is registered in Iran and hence governed by Iranian laws.
“So, the splitting of assets that we were talking about is not possible,” Gupta said.
Gupta declined to comment on the monetary aspects of the stake sale. However, an industry executive said that Shipping Corp is not likely to get any money from the planned stake sale as Irano-Hind is incurring losses and its vessels are not operating.
The joint venture, formed in 1975, was dissolved after receiving the approval of the Indian Cabinet last year. Shipping Corp has 49 per cent in the venture with the Iranian company owning the rest.
After the decision to dissolve the joint venture, the two partners had agreed to divide the fleet. Shipping Corp was pitching to take control of three tankers out of a fleet of six vessels the company had.
Sanctions by Western countries over nuclear development last year had made operations of Irano-Hind vessels difficult as they could not be deployed for transportation due to lack of insurance covers and other issues. ------ ...