Shipping Corp, SAIL sign deal for new venture
Steel Authority of India Ltd (SAIL) on Monday announced the signing of an agreement with Shipping Corporation of India Ltd (SCI). The agreement between the two companies, signed by Mr Soiles Bhattacharya, Director (Finance), SAIL, and Mr U.C. Grover, Director (Technical and Off-shore Services), will form a new 50:50 joint venture company.
According to the agreement, the joint venture company will primarily take care of SAIL's shipping needs by owning and operating ships. The joint venture will be registered at Kolkata and initially cater to around one million tonnes of SAIL's imported cargo annually. This amount will be expanded in subsequent years of operation.
Coking coal imports
SAIL currently imports 10 million tonnes of coking coal an annum. The company expects its imports to increase in the coming years with the completion of its expansion projects.
The shipping venture would enable SAIL to have control over part of its coking coal supply chain and assist SAIL in mitigating risks existing in the shipping market.
SCI is already in the process of acquiring new vessels, and the JV will give its efforts a further boost.
The SAIL Chairman, Mr S.K. Roongta, said that SAIL is keenly focused on ensuring its long-term raw material security and will continue to give thrust on logistics facilities and creation of infrastructure for smooth flow of raw materials and movement of finished products.