The Parliamentary Standing Committee strongly objected to the ambitious plans of the Shipping Corporation of India (SCI) in the acquisition of vessels. The Committee observed: “The Committee finds the lack of foresightedness on the part of SCI as it could not sense the deep decline in the ship prices in the international markets thereby throwing SCI into deep trouble and huge financial losses in the form of ship purchase order”. The Committee, headed by Mr. Sitaram Yechury wanted to know “under what circumstances such an ambitious project was initiated”. The Committee also recommended immediate corrective measures to face the situation.The CAG audit last year said that SCI had not capitalized when the seaborne trade in the country registered 8.5% growth annually by delaying modernization of the navratna company’s fleet capacity. The government, however, defended SCI by pointing out that the fact of the oversupply of tonnage in the international shipping market led SCI to put on hold the acquisition plans. The Committee, however, remarked that SCI was not able to expand its tonnage when the ports registered an upward arrow in the export and import volume of the cargo.
Adversity is a great schoolmaster; but challenge is a greater teacher.
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