SCI to acquire two cellular container vessels

New Delhi, Oct 27 (UNI) Meeting a longstanding demand of the Shipping Corporation of India (SCI), the government today approved acquisition for the public sector shipping major two cellular container vessels of 4300 TEU (Twenty feet Equivalent Units) each at a cost of Rs 606.74 crore (131.90 US dollars).

Briefing reporters after a meeting of the Cabinet Committee on Economic Affairs (CCEA), Parliamentary Affairs Minister P R Dasmunsi said each of the vessels was priced at Rs 303.37 crore (65.95 milion dollars).

The CCEA also gave its approval to the SCI for availing external financing up to 70 per cent of the contract price of each vessel.

The shipping company will meet the balance 30 per cent of the cost from its internal resources.

Mr Dasmunsi said the acquisition would lead to replacement of the SCI's in-chartered tonnage deployed on its India-UK Continent service, insulating it from the fluctuations of the charter market.

In addition, the acquisition of vessels would augment the Indian liner tonnage as also the share of Indian Lines in the country's overseas trade.

''Employment of Indian flag vessels for the trade will result in net foreign exchange savings for the country,'' he pointed out.

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