Maharashtra government exempts stamp duty, clearing the way for the listing of state-owned Shipping Corporation of India Land and Assets Ltd (SCILAL). Privatization plans for Shipping Corporation of India (SCI) progress.
Government Clears Path for Privatization
In a significant move toward privatization, the Indian government has achieved a crucial milestone in its efforts to list the state-owned Shipping Corporation of India Land and Assets Ltd (SCILAL). This development marks a significant step toward the privatization of the nation’s largest shipping company.
Stamp Duty Exemption Granted
The Maharashtra government has granted an exemption from stamp duty related to the demerger of SCILAL. This decision, made in response to the central government’s request, is pivotal as the stamp duty, estimated to exceed ₹250 crore, posed a substantial financial hurdle.
SCILAL Listing Anticipated
With the stamp duty obstacle resolved, the government is now in the final stages of assembling the SCILAL board, ensuring compliance with regulatory requirements. SCILAL, encompassing non-core real estate assets of SCI, will remain under government ownership, while the core assets of SCI are slated for privatization. The government intends to initiate financial bids for its 63.75% stake in SCI shortly after SCILAL’s listing. Currently, SCI oversees approximately one-third of the nation’s total cargo ship tonnage.
Impact on SCI’s Valuation
The imminent listing of SCILAL holds strategic significance, as it will aid in determining the reserve price of SCI. Presently, SCI’s stock value incorporates both its core and non-core assets. The government’s 63.75% stake in SCI is valued at approximately ₹4,181 crore based on the company’s latest stock price.
In this decisive move, the government’s pursuit of privatization gains momentum, reflecting its commitment to strategic economic reforms. The exemption from stamp duty and the impending SCILAL listing signify a significant leap forward in reshaping the landscape of India’s maritime industry.