Select shares from the shipping sector, namely SCI, GRSE and Mazagon Dock are sharply higher in anticipation of further push by the government which has been increasingly looking to boost shipping and shipbuilding activities in India, both for domestic market as well as for exports.
Indian Port Rail & Ropeway Corporation, Sagarmala Development Company and Shipping Corporation of India will be the stakeholders in Bharat Global Ltd
The primary issue stalling the process is the transfer of lease of non-core assets from the SCI to Shipping Corporation of India Land and Assets Limited. The Mumbai collector has submitted the proposal to the state's revenue department, but the process got bogged down on extensive bureaucratic consultations, sources tell Moneycontrol.
The Maharashtra cabinet has already given a stamp duty exemption. The SCI building in Maharashtra is now with its demerged entity, Shipping corporation of India Land and Assets Limited.
The government, confident of a third term, may push to sell its stake in NTPC, which is looking to bring its green energy IPO first
SCI is the midst of a court case for non-payment of medical dues to its employees. There is also no clear picture of how employees will be compensated after the demerger under the pension scheme of the company.
The Maharashtra Cabinet has given stamp duty exemption on the demerger.
Planned stake sales will fall short of Rs 51,000 crore disinvestment target.