Shipping Corp Privatisation Off The Table? Govt Reassesses Amid Global Geopolitical Shifts — Profit Exclusive

The government’s plan to privatise Shipping Corporation of India (SCI) may be put on hold amid the evolving global geopolitical situation, with an increasing focus on strengthening the state-run carrier to safeguard India’s trade and energy security, official sources told NDTV Profit.

The Ministry of Ports, Shipping and Waterways is said to be re-evaluating its earlier plan to offload its 63.75% stake in SCI, a process initiated in 2020 under the strategic disinvestment programme.

Officials said the government now sees a larger role for SCI in navigating disruptions in global trade and supply chains, and in reducing India’s dependence on foreign vessels. “Given the current volatility in global routes and energy flows, capacity expansion has become a strategic imperative,” one official noted.

The privatisation process, which involved the demerger of core and non-core assets to enable stake sale, has faced multiple delays due to asset transfer issues and administrative hurdles, deterring potential investors.

Insiders said that SCI’s management is also pitching for a reversal of the demerger decision, arguing that re-integrating assets would bolster the company’s financial strength and support its long-term growth strategy.

Shipping Secretary Vijay Kumar, in it’s recent interaction with NDTV Profit, outlined the government’s capital infusion plans to boost SCI’s capacity

“The focus is on demand aggregation to strengthen shipping demand. SCI is signing MoUs with major cargo players under a joint venture model, where the corporation will act as an equity partner. A dedicated Maritime Development Fund will infuse additional capital to support fleet expansion and increase tonnage. The model is aimed at scaling up SCI’s fleet and driving its ambitious growth plan,” he had said.

With this shift in approach, the government appears to be prioritising the revival and strengthening of SCI as a strategic national carrier rather than pursuing its privatisation in the near term.