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This is an archive article published on May 15, 2013
SteelMin seeks Cabinet nod for SAIL,RINL to charter own vessels
While the move may deal a severe blow to home-grown shipping lines,the steel ministry has argued that keeping in view the volatile shipping environment and the commercial interests of its PSUs this is imperative.
The steel ministry has sought the Union Cabinets approval to allow SAIL and Rashtriya Ispat Nigam Limited RINL to move out of the control of the shipping ministrys chartering arm Transchart in borrowing vessels to import coking coal by making their own arrangements.
While the move may deal a severe blow to home-grown shipping lines,the steel ministry has argued that keeping in view the volatile shipping environment and the commercial interests of its PSUs this is imperative. Apart from these two PSUs,other state-run companies importing raw material are also required to get routed through Transchart because a five-decade-old policy which envisages supporting domestic shipowners.
Under existing arrangements,SAIL and RINL are mandated to seek vessels from Transchart for importing coal. Both the PSUs together import around 14-15 MT of coal annually,which is likely to rise to 45 MT by 2020,according to the ministrys projections.
The Cabinet,which is expected to consider the matter on Wednesday,has been informed by the steel ministry that revenue outgo of SAIL and RINL,because of the ocean freight in importing their huge volume of coal,is currently around Rs 1,500 crore and is likely to shoot up to Rs 3,000 crore in the near future.
RINL chairman and managing director Amarendra Prasad Choudhary said,If SAIL and RINL charter vessels together,they can ensure a bigger cargo volume and negotiate better freight rates.
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