The disinvestment department along with the shipping ministry is mulling over either handing out the entire 40 per cent government equity or part of it to one or more strategic partners.

Riding high on the shipping cycle, which is on upswing this year, the company is all set to more than double its profit. It is slated to make a record Rs 400-crore profit during 2000-2001 from a net profit of Rs 161.6 crore last year.

The `mini-ratna' company was seeing its total turnover stagnating over the last four years, having grown at an annualised rate of 5 per cent which was far below those achieved in the private sector.

According to one view in the shipping ministry, this would be the best time for disinvestment in the shipping major. Sources said that Mr Jaitley is keen on taking up SCI disinvestment before the highly cyclic nature of the freight market turns adverse. The minister is also reported to be in favour of tackling employee resistance by offering them stock option in the shipping giant, which has a paid-up equity of Rs 282.3 crore.

However, according to another view in the ministry, the company commands huge assets and the government should sell those instead of disinvesting in the company which is of strategic importance. It also points out that with SCI transporting 70 per cent of crude into the country, a private or foreign controlled company cannot be relied upon in the times of emergency.