“SCI complies with all the criteria required for gaining navratna status. Right now, it has a mini-navratna status, which gives autonomy to its board to take decisions that involve an expenditure of less than Rs 500 Crore. We cannot even acquire a VLCC with this money,” the source said.
The navratna status for SCI will help the shipping company speed up its ambitious ship acquisition programme, lined up for the next four years. SCI can now order ships without having to go through the burdensome process of having to get the prior approval of the government.
About two years ago, SCI had unveiled a capital expenditure programme of Rs 15,000 crore for the acquisition of 72 vessels till 2011—this also includes replacement of some of its older vessels. Out of this, it has already spent close to Rs 7,000 crore to buy 28 vessels in the last two years. The balance 44 vessels will be acquired during the next three years, with four of them scheduled to join the SCI fleet within a month.
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