SCI strategic sale likely to be delayed until FY26 on lease transfer issues

The primary issue stalling the process is the transfer of lease of non-core assets from the SCI to Shipping Corporation of India Land and Assets Limited. The Mumbai collector has submitted the proposal to the state's revenue department, but the process got bogged down on extensive bureaucratic consultations, sources tell Moneycontrol.

The Maharashtra cabinet recently approved a stamp duty waiver for the asset transfer

The strategic sale of Shipping Corporation of India (SCI) is set to be delayed until FY26, as transferring the lease of key non-core assets, including the Shipping House and Maritime Training Institute in Mumbai, is facing hurdles.

The strategic sale of SCI, India’s largest shipping company with a fleet of 70 vessels, is part of the government’s broader disinvestment strategy.

Despite recent progress, such as the approval of a stamp duty waiver by the Maharashtra government, bureaucratic delays in the state in finalising the lease transfer to the demerged Shipping Corporation of India Land and Assets Limited (SCILAL)  have stalled the disinvestment process, impacting its privatisation, a senior government official said.

The transfer of non-core assets to SCILAL, a key step in the disinvestment process, has turned out to be more time-consuming and complex than initially thought. The government will now need to reassess the timeline, the official told Moneycontrol.

The Finance Ministry is re-engaging with line ministries to sort out several issues," noted the official. "However, the role of other administrative ministries is critical."