The decision was recently conveyed to the company. SCI will, thus, have the power to incur capital expenditure (capex) on additions, modifications and new investments upto Rs 100 crore per project.

SCI's board will also be allowed to incur capex on replacement of assets upto Rs 200 crore per project, subject to conditions. The funds should either accrue from internal resources or market operations, including issue of bonds, external commercial borrowings or equity shares.

The expenditure should also be incurred on schemes included in the capital budget and approved by the Centre.

The SCI board has also been accorded more powers in the memorandum of understanding (MoU) for 1998-99 signed with the government recently. The company has been allowed to acquire a vessel, not mentioned in its annual plan or capital budget, provided it is satisfied that a ready market exists for thedeployment of the new ship.

In the case of acquisition of vessels in a series, SCI would be permitted to process the vessels separately, subject to Centre approval, if the same is justified on commercial considerations.

SCI chairman-and-managing director (CMD) has been equipped with powers to make payment upto $5,00,000 towards preparation of ship acquisition proposals. These will include legal, documentation and merchant banking fees.

The CMD will also have the powers to transfer directors of the operating and services on his own, under intimation to the ministry of surface transport.As per the MoU, the SCI board will also have the power to sell vessels, which are not economically viable, for further trading or scrapping without Centre approval.

The MoU has projected a 6 per cent decrease in the net of SCI from around Rs 225 crore in 1997-98 to Rs 210 crore in 1998-99.

While the gross margin, excess of income over expenditure before providing for depreciation, interest, tax and appropriations, forthe current fiscal is pegged same as that of 1997-98 at Rs 650 crore. Shipping Corporation of India has proposed to reduce the average berthing delay from 12 days to 10 during 1998-99.