Relevance: GS-3 (Infrastructure, Shipping & Trade) | Source: The Hindu

At the India Maritime Week, the government announced revival measures for the Shipping Corporation of India (SCI)</strong), which had lost its dominance in recent decades due to liberalisation, global competition, and delays in fleet modernisation.

About the Shipping Corporation of India (SCI)

• Established in 1961; a Public Sector Undertaking under the Ministry of Ports, Shipping and Waterways.
• Once among Asia’s largest ship owners, operating tankers, bulk carriers, container ships, and passenger vessels.
• Played a critical role in India’s international trade routes, coastal shipping, and humanitarian evacuation missions.
• Decline began post-1990s due to global shipping liberalisation and delays in modernising its fleet.

Need & Significance of Reviving SCI

• Strategic importance: Ensures secure shipping routes for essential imports such as crude oil, fertilizers and foodgrains—especially vital during geopolitical turbulence.
• Economic security: Reduces vulnerability to global freight rate volatility, as seen during the pandemic and Red Sea disruptions.
• National capacity building: India currently transports only ~7% of its own cargo through Indian vessels; SCI revival aims to increase this share.
• Support to shipbuilding: Long-term contracts and joint ventures with PSUs help boost domestic shipyards and maritime employment.
• Global supply chain resilience: A stronger SCI enhances India’s bargaining power in global trade.

MCQ

Q. Consider the following statements about the Shipping Corporation of India (SCI):
1. It is a Public Sector Undertaking under the Ministry of Ports, Shipping and Waterways.
2. SCI operates only passenger vessels.
3. Strengthening SCI enhances India’s strategic maritime security.

Which of the above are correct?

(a) 1 only
(b) 1 and 3 only
(c) 2 and 3 only
(d) 1, 2 and 3

Answer: (b)