BS reported that the Shipping Corporation of India has decided to wait and watch before it acquired new ships as asset valuations had declined on account of the downturn.

Mr S Hajara CMD of SCI at the sidelines of Intaglio 2008-09, the annual business school meet of the Indian Institute of Management, Calcutta, said that "Last October when we were negotiating with shipyards for four Capesize vessels that would be delivered in 2012, for USD 93 million, it seemed like a good bargain. But, prices started falling thereafter and now we have decided to monitor the international prices till we strike a deal."

Mr Hajara however said that SCI not deferred its acquisition plans otherwise. It will take delivery of three ships during 2009.It has already placed orders for 29 ships with a net capacity of 2.2 million DWT for INR 8,000 crore. This apart, the state owned shipping major also planned to place orders for 40 new ships for USD 2 billion as a part of the Eleventh Plan period layout. The delivery would be taken between 2009 to 2012 and would take up SCI's tonnage to 10 million DWT from 5 million DWT now.

Mr Hajara said that "The tanker market is not that badly affected, as crude is the main source of energy for any country. Even during recessionary times there is compulsory usage of petroleum products for transportation and household purposes."

(Sourced from Business Standard)