Government dissolves shipping corp JV with Iranian IRISL

NEW DELHI: The government has decided to dissolve the 38-year old shipping joint venture between state-run Shipping Corporation and Islamic Republic of Iran Shipping Lines (IRISL) as the company was finding it difficult to get business because of sanction on Iran.

“It (JV between Shipping Corp and Islamic Republic of Iran Shipping Lines) has been dissolved,” minister of information and broadcasting Manish Tiwari told reporters after a meeting of the Cabinet Committee on Economic Affairs on Tuesday.

Irano Hind Shipping Company was formed in 1975 by Iran’s former ruler Shah Reza Pahlavi and the then Prime Minister Indira Gandhi. The company had oil tankers and dry bulk vessels.

The Shipping Corporation of India has a 49% stake, while the Islamic Republic of Iran Shipping Lines holds the balance 51%.

The company was not finding any business after 2010 UN sanctions on IRISL for aiding Iran’s nuclear programme. The company owns eight vessels — four oil tankers and four dry bulk cargo vessels. The two companies are likely to split the assets of the company in the ratio of their shareholding.

The CCEA deferred a decision on increase in dearness allowance and sugar decontrol as finance minister P Chidambaram was not present at the meeting.