India-Iran company liquidated as sanctions bite
Delhi to get control of six ships after ending 39-year-old joint venture
New Delhi: India will get control of six ships following a decision to dismantle a joint Iranian-Indian shipping company hit by Western sanctions on Iran, a government official said Thursday.
The Irano Hind Shipping Company was finding it difficult to get customers or insurance for its ships because of the sanctions. Last week, the Indian government agreed to close down the 39-year-old joint venture.
The state-owned Shipping Corporation of India will take over six of the seven vessels belonging to Irano Hind, the official said. In return, SCI will take on the liability of repaying the joint company’s debt, estimated at around $88 million (Dh323 million).
The official spoke on condition of anonymity because he was not authorised to speak to the media.
Western countries have imposed sanctions on Iran to deter it from pursuing a nuclear weapons programme. Iran insists its nuclear programme is for peaceful purposes.
Commercial lifeline
India is one of the main targets of US attempts to chip away at Iran’s critical commercial lifelines across Asia.
The Irano Hind Shipping Company was set up before Iran’s 1979 Islamic Revolution as a joint venture between the Shipping Corporation of India and the Islamic Republic of Iran Shipping Lines. The IRISL held a 51 per cent stake in the company, while SCI had the remaining 49 per cent.
