Cabinet04-March, 2006 15:55 IST
Formation of Joint Venture Company (JVC) at Panama for Transportation of Liquified Natural Gas (LNG)
The Union Cabinet today gave its approval for initial investment, by Shipping Corporation of India (being a PSU), to the tune of 33.77% of equity amounting to US $ 20.88 million in one Joint Venture Company (JVC) at Panama with Mitsui OSK Lines, Japan (33.77%), Nippon Yusen Kabushiki Kaisha, Japan (21.64%) and Kawasaski Kisen Kaisha (10.82%) for Dahej Expansion project of Petronet LNG Ltd. The share of SCI in the this Joint Venture may go down to 26%, if Petronet LNG Ltd. or its nominee exercises the option to take up to 23% share in the above JVC.

Besides earning a share of profit to be generated in the 25 years of the Time Charter Agreement, SCI would be the only Indian shipping company to venture into the second LNG transportation business. By participating in the Management of the company, SCI will be able to train and develop its officers which would be useful for future projects.

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YSR/HS/CS
(Release ID :16214)