Financial Daily from THE HINDU group of publications
Tuesday, Dec 10, 2002
Industry & Economy
Logistics - Shipping
Maritime institute not part of SCI bid offer
MUMBAI, Dec. 9
BIDDERS for the 51 per cent Government stake in Shipping Corporation of India (SCI) will not get the company's training institute in Mumbai spread over an area of 40 acres.
The Government has decided to hive off the training institute, The Maritime Training Institute (MTI), into a separate entity.
According to Mr P.K. Srivastava, Chairman of SCI, the MTI will come under the control of the Government following the disinvestment of SCI.
The MTI, he said, was currently being cross-subsidised by SCI. The Government had decided to develop MTI as a world-class shipping institute, he said.
Mr Srivastava was speaking at the annual general meeting of SCI here on Monday. He said the board confirmed payment of an interim dividend of 35 per cent as the final dividend.
The net profit for the year ended March 31, 2002, stood at Rs 241.56 crore, compared to a net profit of Rs 382.56 crore recorded in the previous financial year.
According to the annual report, the fall in profitability during the year under review was on account of a depression in the operating income of various business streams of the company.
The lower cargo liftings and freight realisation in the UK continent sector of the liner services and the fall in the revenues of the bulk carrier and tanker division had contributed to this reduction.
Dry-docking and repairs to a higher number of vessels during the year, along with several write-offs and creation of additional provisions had also affected the bottomline.
The company disposed off eight vessels during the year, leaving it with 92 vessels (4.3 lakh DWT).
With the dismantling of the administered price mechanism effective April 1, 2002, SCI lost nodal agency status for crude transportation. From the financial year 2002, all the PSU refineries will be free to source their requirements and make their own transportation arrangements without going through the nodal agency, the report added.
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