Shipping Corporation of India Inks MOU amid Growth Plans

SCI Shipping Corporation of India (SCI) has signed the Memorandum of Understanding (MOU) with the countrys Ministry of Shipping for the financial year 2016-17 as the company eyes growth opportunities. The MOU, which is based on the MOU guidelines 2016-17 issued by the Department of Public Enterprises (DPE), consists of parameters drawn on the prescribed evaluation criteria and factors such as capacity and its expansion, business environment, projects under implementation have been considered. According the Government of India, SCI has ambitious CAPEX plans in 2016-17 to augment its tonnage through acquisition of second hand vessels. SCIs growth plans are in line with the Ministry of Shipping and the Government of Indias aims to escalate the growth of the countrys maritime sector. The shipping industry is experiencing a downturn as the freight rates have come under pressure due to overcapacity. However, despite unfavorable market conditions and the current downturn in the shipping industry, SCI is taking measures for sustained growth which include a number of cost-savings.