No experienced takers for the fleet

The Indian government is expected to reopen bidding for the privatisation of the Shipping Corp of India, after only attracting unqualified suitors.

The 51% stake in the country's largest shipping line was due to be sold-off by the end of the financial year ending 31 March.

"There are only two bidders left and none of them have any experience in the sector," a senior disinvestment ministry official said on Saturday.

"So there is a view that fresh bids may be called."

The government had forecast that it would raise 120bn rupees (�1.61bn; $2.5bn) from privatisations by March 2003 but has only realised about 30bn rupees from the sales including a telecoms firm, auto maker and oil products retailer.

Opposition from political parties, trade unions and consumer groups has stalled the privatisation process.

More privatisations

The Financial Express newspaper has reported the decision will be made at a Cabinet committee on disinvestment (CCD) meeting on 15 April.

The paper also said the CCD would recommend the privatisation of international and domestic airlines, Air India and Indian Airlines and rework guidelines for takeovers of state-owned companies by management or employee.

In the current financial year to March 2004, the privatisation target is 132bn rupees, which includes the sale of stakes in Hindustan Petroleum and Bharat Petroleum, the biggest sell-offs to date.

Bidders for Hindustan Petroleum have been short-listed and the sale is due to be sealed by November.