SCI, Varun buy vessels for Rs 230 crore; Tolani follows suit

Praveen Chandran
13 November 2002

Mumbai: India’s declining shipping tonnage got a fillip with Shipping Corporation of India (SCI) and Varun Shipping acquiring vessels for a total consideration of around Rs 230 crore.

SCI acquired a new oil tanker from Cochin Shipyard for around Rs 130 crore, while Varun Shipping bought its LPG carrier from Exmar, a Belgium-based shipping company, for Rs 90 crore ($18 million).

Varun Shipping officials say the new vessel will be used initially to trade in the US, the Gulf, US East Cost and the Caribbeans to transport LPG and ammonia. The vessel has a cargo-carrying capacity of 24,130 million tonnes. SCI’s new oil tanker with a dead weight tonnage of 92,000 will be used for domestic as well as overseas crude oil movements, the officials add.

Varun Shipping’s vessel acquisition was financed by Bank of India, Export Import Bank of India and Catholic Syrian Bank, while SCI financed the deal through internal accruals.

According to sources, following SCI and Varun, the Mumbai-based Tolani Shipping has also initiated steps to expand its fleet strength. The company has decided to flag out its 56,000 dead weight tonnage bulk carrier being built at Mitsui’s yard in Japan.

This new-generation Handymax vessel will be acquired by Tolani Shipping through the “new building resale route” which will be ready for delivery on 5 March 2003.