Shipping Corp profits decline by Rs 665 cr in 4 years | business | Hindustan Times
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Shipping Corp profits decline by Rs 665 cr in 4 years

business Updated: Sep 05, 2011 19:32 IST
HT Correspondent

The Shipping Corporation of India (SCI), a Navratna company under the ministry of shipping, witnessed a sharp decline from Rs 1042 crore to Rs 377 crore from 2005-06 to 2009-10, with its turnover almost remaining static, a CAG report said on Monday. The company's fleet strength also declined from 83 to 76 during the period.

"SCI did not pursue the acquisition policy ambitiously to augment and modernise its fleet and due to slippage in achievement of acquisition targets, the average age of the company's vessels was 15.63 years as against 11 years of their immediate competitor in private sector," the report stated.

The report mentions that SCI incurred a loss of Rs 134.04 crore against standing charges of its vessels. "The company could not find suitable employment for vessels resultantly the idle days increased from 1.33% in 2007-08 to 4.46 and 3.25% in 2008-09 and 2009-10 respectively".

The report also said despite failing to achieve its annual targets in three out of five year period, with the scaled down MoU targets, the SCI was given full weightage on key performance parameter of tonnage acquisition. "Thus, the underlying principle of an MoU to motivate the company to strive for further growth was defeated," the CAG report said.