New Delhi: Union Cabinet has approved sale of Shipping Corporation of India's (SCI) 20 per cent stake in troubled liquefied natural gas (LNG) transportation venture Greenfield Holding Co Ltd (GHCL) to Japanese shipping line Mitsui OSK Line, official sources said.

Mitsui is likely to pay $ 11 million – the sum invested by SCI in the venture – plus interest of about 9 per cent (about $ 1.16 million) for acquiring the 20 per cent stake held by the Indian line, government sources said after a meeting of Union Cabinet.

Acceptance of the proposal would free SCI from the obligation of pumping additional funds worth $ 33 million to pay Greenfield's borrowings from the ANZ Investment Bank- led consortium. SCI had decided not to participate in the rescue package in view of the on-going privatisation exercise.

Mitsui currently holds 40 per cent stake in the $ 200 million venture floated for transporting LNG for Enron's Dabhol power project. Government of Oman has the remaining 40 per cent stake, sources said.

Greenfield, which operates a 137,000 cubic metre capacity LNG tanker 'Laxmi', had executed a 'time charter agreement' with Dabhol Power Company (DPC) for a period of 20 years to transport two million tonnes per annum of LNG from Oman LNG, Oman and Abu Dhabi Gas, United Arab Emirates (UAE).

PTI