Cabinet nod to acquiring six vessels worth Rs 1077 cr

New Delhi, Nov 30 (UNI) The Cabinet Committee on Economic Affairs (CCEA) today allowed the Shipping Corporation of India (SCI) to acquire six Handymax bulk carriers worth Rs 1,077.60 crore to replace the ageing Handymax fleet due for scrapping in the near future.

Each of the vessel, with 57,000 dead weight tonnage, will cost Rs 179.60 crore, Finance Minister P Chidambaram told reporters after the CCEA meeting.

The SCI will avail of external borrowing up to 80 per cent of the contract price of each vessel either from the international market or the domestic market. The balance amount will be met from its internal resources.

Mr Chidambaram said acquisition of vessels will augment the Indian dry bulk carrier tonnage as also the share of Indian Lines in India's overseas trade.

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

UNI