New Delhi: The Cabinet Committee on Economic Affairs has approved the decision of the Shipping Corporation of India (SCI) to acquire six Handymax Bulk Carriers, of about 57,000 Dead Weight Tonnage (DWT) each, at a price of $44.90 million (Rs179.60 crore) per vessel. Accordingly the total investments to be made for the six vessels would be $269.40 million (Rs.1077.60 crore).

SCI has said that it would avail of external borrowings for up to 80% of the contract price of each vessel from Banks/financial institutions, either from the international market or the domestic markets, and the balance from its own internal resources.

The vessels would partly replace the ageing Handymax fleet of the company, which will become due for scrapping in the near future.

The acquisition of these vessels would augment the Indian dry bulk carrier tonnage and also augment the share of Indian shipping lines in India''s overseas trade. It may be noted that the vast majority, over 70 per cent, of India''s foreign trade is still carried in the holds of foreign shipping lines.

The deployment of Indian flag vessels would also result in net foreign exchange savings for the country.