Basking in the Boom

Basking in the Boom Hansavivek GREAT EASTERN SHIPPING is trying to keep abreast of developments in the shipping industry by selling older ships and purchasing modern bulk carriers and tankers. Last year the company sold three vessels for Rs 2.87 crores and this year it has acquired two bulk carriers of 21,000 tons each for about Rs 8 crores. Orders have been placed for a products carrier of 25,000 DWT in the UK, which would cost Rs 9.4'3 crores and is expected to be delivered in March next, 'and for four 'Jag Darshan' type ships of 21,610 DWT each with Hindustan Shipyard at a total cost of Rs 22 crores. Two of these ships were originally scheduled to be delivered before the end of May 1974, but are now not likely to be delivered by that date and the company would be denied the benefit of development rebate. One of these will be delivered in July and the other in December next year. Of the remaining two, one is expected in April and one in July 1975. Meanwhile, CES has also placed orders for three more ships and acquired resale contracts for another two with a total deadweight tonnage of about 4,07,000. costing about Rs 89 crores. This large programme is proposed to be financed by internal resources and loans from the Shipping Development Fund Committee and various foreign banks. The directors also intend to plough back a larger portion of profits. The company's borrowing limit has been raised from Rs 70 crores to Rs 200 crores.