New Delhi: Shipping Corporation of India (SCI) will continue to be the national flag carrier even after its privatisation and government will have powers to requisition its entire fleet in case of emergency, Disinvestment Minister Arun Shourie said on April 16.

A day after the government decided to seek fresh bids to enable foreign companies to stake claim for entire 51 per cent stake in SCI, Shourie said in an interview, "SCI will be national flag carrier even after disinvestment… It will continue to be registered in India."

Asked if the government would retain a minimum of 26 per cent equity in the privatised shipping company, he said there was no need for such a thing.

"There will be a call and put option in the transaction document," he said, adding that even without such equity participation the government would have powers to requisition SCI's entire fleet in case of national needs.

The Cabinet Committee on Disinvestment (CCD) had decided on April 15 night to start afresh the bidding process for SCI to allow foreign investors to bid solo in line with the policy of permitting 100 per cent foreign direct investment (FDI) in the shipping sector.

Earlier, the foreign companies were allowed to retain only 25 per cent equity in SCI and that had prevented a large number of foreign shippers to participate in the disinvestment process, ministry officials said.

PTI