Shipping Corporation of India (SCI)

Indian state-owned insurers, shipping lines and government officials met to discuss the situation in Mumbai on Wednesday. India's state-run insurance firms have agreed to offer coverage of up to $50 million for each Indian ship carrying Iranian crude. Such coverage is much lower than the up to $1 billion that European insurers would normally give per ship to cover third-party claims in the event of an oil spill or other accident…'Our exposure would run into billions of dollars, but since there haven't been many insurance claims in the last several years, we have taken a pragmatic view,' said Sabyasachi Hajara, chairman and managing director of state-owned Shipping Corp. of India,the country's biggest shipper of crude from Iran…The problems facing India show the effectiveness of policies aimed at squeezing Iran financially in a bid to force the country to take measures that guarantee its nuclear program isn't being used for weapons development. Tehran says the program is for peaceful purposes…Indian shippers, such as Shipping Corp. of India, Great Eastern Shipping Co. and Mercator Ltd., handled a total of about six to seven ships carrying Iranian crude every month before the EU ban, said Anil Devli, head of the Indian National Shipowners Association.

The Indian shipping industry was also pushed to accept low insurance coverage because it doesn't want to see its business going to Iranian tankers, the executive said.

'The petroleum ministry wants to bring crude in Iranian vessels which will hurt business for Indian ships, so we accepted this figure,' he said." (The Wall Street Journal, "Insurance Woes Slow India Deals for Iran Oil," 7/11/2012) (http://professional.wsj.com/article/SB10001424052702303919504577520633765951536.html?mg=reno64-wsj)

"India, the third-biggest buyer of Iranian oil, will offer state-backed insurance to tankers, helping the nation’s biggest sea carrier to resume cargoes from the Persian Gulf nation hit by international trade sanctions.

"Indian state-run insurers have agreed to give limited cover to local ships for carrying Iranian oil, helping the energy-hungry country import reduced volumes from sanctions-hit Tehran from July, a Shipping Corp of India director said on Tuesday. 'We have in writing from General Insurance Corp that it and four other insurers will provide a cover of $50 million to Indian flag carriers per Iranian voyage,' Sunil Thapar of Shipping Corp of India, the country's largest shipping firm with a fleet of 29 crude carriers, told Reuters. Tough new European Union sanctions aimed at stopping Iran's oil trade also ban EU insurers and re-insurers from indemnifying ships carrying Iranian crude from July." (Reuters, "India insurance cos to give $50 mln cover for Iran oil buy-Exec," 5/1/12) (http://www.reuters.com/article/2012/05/01/india-ship-iran-idUSL4E8G147020120501)

"The Cabinet is likely to consider on Tuesday winding up of a 38-year old Indo-Iranian shipping company as tightening western sanctions has run the venture's oil tankers and dry bulk vessels aground. Irano Hind Shipping Company, which was formed in 1975 by Iran's former Shah Reza Pahlavi and the then Prime Minister Indira Gandhi as a bond of friendship, will be shut as it had failed to get business, official sources said. India's largest shipping firm, Shipping Corporation of IndiaBSE 0.25 % (SCI) owns a 49 per cent stake in the venture, while Islamic Republic of Iran Shipping Lines (IRISL) holds the remaining 51 per cent. The Union Cabinet is scheduled to consider winding up of the joint venture at its meeting on April 2, they said... The decision to wind up Irano Hind Shipping Co was taken in July last year, they said adding charters don't want to take vessels which are under sanctions." (The Economic Times, "Cabinet to Consider Closing of Indo-Iranian Shipping Company," 3/28/13) (http://articles.economictimes.indiatimes.com/2013-03-28/news/38099823_1_iran-shipping-lines-irano-hind-shipping-company-irisl)

In 2018 the U.S. state of Iowa listed Shipping Corporation of India as an Iran restricted company rendering Shipping Corporation of India ineligible for investment and/or state contracting. (https://www.ipers.org/sites/default/files/media/2017%2009%20Iran%20Prohibited%20Companies%20List%2009-30-17.pdf)

"Indian shipping firms will continue to transport Iranian crude even if limited insurance coverage due to tightening Western sanctions leaves them financially exposed to a spill or accident, a top executive and industry sources said... Shipping Corp of India, which is the country's largest shipping firm, Great Eastern and other Indian tanker firms have asked state insurers to step in and provide up to $50 million in third-party liability coverage per tanker voyage. The amount is a fraction of the typical $1 billion coverage that a supertanker carrying around 2 million barrels of crude would have from reinsurers against personal injury and pollution claims. India's shipping companies would run the risk of shipping the crude even though they would be liable for any claims above $50 million in the case of an incident, industry sources said... The shipping firms have sent their request to state insurers United India Insurance, General Insurance Company, New India Assurance Co. Ltd., National Insurance Co. Ltd. and the Oriental Insurance Co. Ltd., said a shipping source. The shipping and finance ministries were also looking at the proposal." (Chicago Tribune, "Indian firms to carry Iran crude despite reduced insurance," 4/24/12) (http://www.chicagotribune.com/news/sns-rt-us-india-oil-iranbre83n0dm-20120424,0,4527699.story)

But in another sense, it illustrates the growing strains in Asian capitals over the economic squeeze on Tehran. Leaders in India and elsewhere must now balance crucial needs for Iran’s energy exports with mounting demands from their American allies to freeze out the Islamic Republic.

"An Iranian-led shipping venture that predates the 1979 Islamic Revolution is now unraveling as one of the most high-profile blows from international sanctions and U.S.-driven efforts to drive wedges between Tehran and its key trading partners.

As of May 17, 2021, Iowa's Public Employee's Retirement System lists SCI on its Iran Scrutinized Companies List. (https://www.ipers.org/sites/default/files/IPERS%27%20Iran%20Prohibited%20Companies%202Q21.pdf)

The impending collapse of the Irano Hind Shipping Co. — created in 1974 with India’s state-run maritime firm — is likely to be noted in Washington and among allies as evidence of the deepening wounds from the diplomatic and economic onslaught over Iran’s nuclear program.

Shipping Corp. of India will soon start services to Iran as Indian insurers have agreed to give as much as $100 million of cover per voyage, Chairman Sabyasachi Hajara said without specifying a timeframe. Prior to the sanctions, European companies provided unlimited protection against risks including oil spills and collisions, he said…Bulk carriers such as tankers contributed to as much as 67 percent of Shipping Corp. (SCI)’s 38 billion-rupee ($684 million) sales in the year ended in March, according to data compiled by Bloomberg…Shipping Corp. will stick to its orders for 25 ships that are due for delivery by 2014, Hajara said in the interview. The company, 64 percent owned by Indian government, had 75 ships in its fleet as of March." (Bloomberg, "Iran Oil Shipping To Resume As Insurers Step In," 8/2/12) (http://www.bloomberg.com/news/2012-08-01/iran-oil-shipping-to-resume-as-insurers-step-in-corporate-india.html)

"A shipping company backed by the governments of India and Iran says it will close because of anti-Iran sanctions. The Shipping Corp. of India, which holds a 49 percent stake in the Irano Hind Shipping Co., says sanctions have made it too difficult to deploy its vessels. Shipping Corp. managing director S. Hajara says Irano Hind will cease operation and its fleet will be split between his company and the Islamic Republic of Iran Shipping Lines, which holds the remaining stake. He says the decision was made at an Irano Hind board meeting last week and must be approved by the two governments and the United Nations." (Fox News, "Indian-Iranian shipping company to close due to sanctions against Iran," 7/25/12) (http://www.foxnews.com/world/2012/07/25/indian-iranian-shipping-company-to-close-due-to-sanctions-against-iran/)

As of August 15, 2019, the state of Iowa listed SCI on its Iran scrutinized companies list. (https://www.ipers.org/sites/default/files/media/2017%2009%20Iran%20Prohibited%20Companies%20List%2009-30-17.pdf)

"In a development with serious international ramifications, the Iranian Revolutionary Guard Corps (IRGC) has detained an Indian ship carrying oil in the Persian Gulf. Sources said the ship, named MT Desh Shanti, was on its way to India from Iraq when it was detained by the IRGC. The ship is owned by the Shipping Corporation of India." (The Times of India, "Iran seizes Indian ship carrying oil from Iraq," 8/15/2013)  (http://timesofindia.indiatimes.com/india/Iran-seizes-Indian-ship-carrying-oil-from-Iraq/articleshow/21836778.cms)

"India's Insurance and Regulatory and Development Authority has agreed to allow state-run insurers to replace their European counterparts, enabling at least Shipping Corp Of India to resume transporting Iranian oil, officials said . . . Despite the risks, the chairman of state-run Shipping Corp of India, the country's biggest, said his company would use the limited cover to transport Iranian crude . . . Refiner HPCL, which has already taken a suezmax vessel carrying 1 million barrels of oil from Iran on a delivered basis, may hire an SCI vessel for a cargo scheduled for lifting on July 25-27, said an official with the refiner, who asked not to be named because he was not authorized to speak to the media." (Reuters, "India insures Iran oil imports to safeguard flow -sources," 7/10/12) (http://www.unitedagainstnucleariran.com/company/hindustan-petroleum-corp-ltd) (http://in.reuters.com/article/2012/07/10/india-iran-insurance-idINL3E8I941C20120710)

"State-run Shipping Corp. of India, the largest tanker owner in India, will lose its EU insurance coverage for its oil tankers operating in Iran from July 1, when European insurers will be prohibited from indemnifying ships carrying Iranian oil... 'We are covered by P&I clubs in the EU,' Sunil Thapar, director at Shipping Corp of India told Reuters, referring to the groups of customer-owned maritime protection and indemnity insurance groups. 'These clubs will not be able to give us coverage for vessels to Iran from July. It will be difficult for Indian shipping lines to transport Iranian crude unless alternative arrangements are made.' SCI owns 39 oil tankers." (Reuters, "India ships will lose insurance due to Iran sanctions, may look to China," 2/21/2012) (http://www.reuters.com/article/2012/02/21/oil-iran-shipping-idUSL4E8DL16D20120221)

"The largest domestic shipliner, Shipping Corporation of India (SCI), today said it has held discussions for reviving the joint venture with Islamic Republic of Iran Shipping Lines (IRISL). It said the discussions were held post lifting of the sanctions against the Islamic nation. "SCI and Islamic Republic of Iran Shipping Lines (IRISL), shareholders in the JV, have held discussions about feasibility of revival of operations by the JV, in view of lifting of the sanctions imposed on Iran," it said in a regulatory filing to BSE on Tuesday." (September 6, 2016). (https://www.ndtv.com/business/shipping-corporation-to-revive-joint-venture-with-iranian-shipping-lines-1455261)

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Shipping Corporation of India (SCI) will resume sailing to Iran this month after a four-year gap, transporting an oil cargo for a state-run refiner, the chairman of India’s biggest shipping company said on Tuesday. (July 5, 2016). (https://in.reuters.com/article/india-iran-shipping-idINKCN0ZL0S6)

"Two of India's largest shipping companies which carry crude from Iran haven't yet been able to find suitable insurance cover, a situation which could hurt the flow of oil from the sanctions-hit Middle Eastern country. The Shipping Corp. of India Ltd. -- the country's biggest marine transporter by fleet size -- isn't getting 'adequate' insurance cover from local companies, Chairman Sabyasachi Hajara said. 'Our requirement and what has been offered by the insurers are yet to match...so nothing has happened as yet,' Mr. Hajara said late Tuesday. He added that state-run Shipping Corp. won't accept any of the inadequate proposals. Mr. Hajara's comments show that India is yet to make any headway in getting insurance for Iran shipments after Europe's insurers withdrew all cover following the region's sanctions against trade with Tehran." (Wall Street Journal, "Shipping Corp: Insurance Cover for Iran Crude Not Adequate," 8/8/12) (http://professional.wsj.com/article/SB10000872396390443404004577576662165094988.html?mg=reno-wsj)

The top executive of the Indian side of Irano Hind said Wednesday it had become too difficult to operate the fleet’s seven vessels under sanctions — imposed by the U.S. in 2008 and U.N. two years later for the company’s connections to the state-owned Iranian shipping line…The joint venture — IRISL with 51 percent to the Indian side’s 49 percent — was formed by Iran’s former Shah Reza Pahlavi and the late Indira Gandhi of India as a bond of friendship...But years of escalating sanctions have taken a toll. Officials at India’s Shipping Ministry have reportedly raised alarms about growing losses at Irano Hind and difficulties to find insurance to carry Iranian oil." (Washington Post, "Indian-Iranian shipping company says it will close because of anti-Iran sanctions," 6/25/12) (http://www.washingtonpost.com/world/asia_pacific/joint-indian-iranian-shipping-company-says-it-will-close-because-of-anti-iran-sanctions/2012/07/25/gJQAVcUi8W_story_1.html)

"India has been forced to seek its own arrangements to insure its purchases of Iranian oil, officials said, even as it reduces imports under pressure from U.S. and European Union sanctions.

Shipping Corporation of India has many joint-ventures with Iranian businesses. (Ship India Website, "Joint Ventures, Iran") (http://www.shipindia.com/profile/about-sci/joint-ventures.aspx)