New Delhi: Disinvestment Minister Arun Shourie is believed to have given his approval to acquisition of two new very large crude carriers (VLCC) by Shipping Corporation of India (SCI) in view of existing uncertainty over disinvestment of SCI.

"Given the existing uncertainty with regard to the disinvestment of SCI, this (Disinvestment) Ministry supports the proposal (to acquire two VLCC)," Shourie's Ministry has communicated to Finance Ministry, which is likely to vet the proposal on February 20.

With the privatisation of SCI in the final stages, both the Ministries of Disinvestment and Finance had earlier opposed the VLCC acquisition plan of the company, which is estimated to cost about Rs 650 crore, official sources said.

The Finance Ministry has convened a meeting of the Public Investment Board (PIB) on February 20 to consider SCI's proposal to acquire two VLCC from South Korean Hyundai Heavy Industries at a cost of $ 65.2 million per vessel.

Sources said Disinvestment Ministry had earlier opposed the acquisition, as it felt the decision to make such huge investment should be left to the strategic investor.

Shourie's change of heart follows Petroleum Minister Ram Naik's refusal to extend nodal agency status of SCI for transportation of crude oil for a period of two years post its privatisation, they said.

Only two firms, including Essar Shipping, are left in race for buying government's 51 per cent stake in SCI. Transaction documents for the SCI sale have been frozen and government was suppose to invite price bids shortly.

PTI