CCEA approves acquisition of 6 tankers by Shipping Corporation of India

- Cabinet Committee on Economic Affairs (CCEA)
- ACQUISITION OF SIX TANKERS BY THE SHIPPING CORPORATION OF INDIA

The Cabinet Committee on Economic Affairs today gave its approval for acquiring six Long Range-1 (LR-1) Product Tankers of about 60,000 Dead Weight Tonnage (DWT) at a price of US$ 61.80 million (Rs.284.48 crere per vessel at US$=Rs.46) by the Shipping Corporation of india. The total investment for the six vessels would be US$ 370.80 million, (Rs.1705.68 crores).

The acquisition will lead to replacement of SCI’s ageing Product tanker tonnage which would meet the increased demand for Products exports and coastal transportation in the coming years. This would enable the Public Sector Shipping Company also to cater to most of India's Product transportation requirements so as to reduce dependence on the foreign flag vessels which would result in net foreign exchange sevings for the country.

Source : Equity Bulls

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