SCI to start due diligence for stake in a shipyard

Mumbai (Reuters): State-run Shipping Corp of India expects to start due diligence to acquire a minority stake in any of the four Indian shipbuilders that had submitted an expression of interest, a top official said on Friday.

The firm expects to start due diligence in ABG Shipyard, Bharati Shipyard, Pipavav Shipyard and unlisted Goodearth Chairman S. Hajara told reporters.

Hajara also said SCI has signed an agreement to set up a joint venture with state-run Coal India to transport thermal coal for the latter.

The two firms intend to set up the JV in 2011, he said, without specifying financial details.

SCI expects to initially ship around six million tonnes of thermal coal, which can go to over 20 million tonnes thereafter, Hajara added.