Explaining the nature of the deal to Indian news agency PTI, SCI director of liner and passenger services Sarveen Narula stated: "We are trying to buy nine LNG ships, not through SCI but through GAIL. SCI will run those ships in partnership with GAIL. We are actively working with GAIL in selection of [other] partners. We may have the right to take up to 25% of the stake in that [venture].
"The MoU is being finalised. We are already been in talks with them. Very soon it will be done. It is brokered through the government.”
Of the nine vessels to be acquired by GAIL, three would be built in Cochin, Kattupalli or Pipapav Shipyards under prime minister Narendra Modi's “Make in India” policy. Vishwapati Trivedi, secretary at the Indian Ministry of Shipping indicated: “There are several things we have done in line with the Make in India policy announced by the prime minister. On the shipping side, we are doing several things, like shipbuilding. The government of India is trying to float very attractive promotional policy to encourage shipbuilding in India.”
The shipyards in question will have to undertake preparatory works in order to construct the LNG carriers, construction of which is estimated at Rs1,500crore ($243m) each.
“Bangladesh ships are yet to make the classification standards or the specs which are required before they are allowed into the Indian port entry routes,” Trivedi added. “They don't seem to have the comprehensive coverage we require. But they are keen to bring their ships to that level and keen to get that rank of insurance cover.
“I think in the initial stages we have to give a few concessions for them. We will also provide some of the facilities available in the ports, so that the trade gets kicked off. When the trade gets kicked off, in a few years time they can catch up to the norms required.”
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