NEW DELHI, Aug 7: With the Ministry of Surface Transport (MoST) delaying permission, the public sector Shipping Corporation of India (SCI)'s ambitious plan to float a joint venture firm overseas with two Thai and Mauritian firms may come unstuck.

The three companies have proposed to float a shipping firm, Bulk Transportation Company, in Singapore, with a capital investment of $10 million (approximately Rs 35 crore).

MoST sources said the ministry was non-commital about permission to SCI's proposal to set-up a joint venture transportation firm with Precious Shipping Ltd - a subsidiary of G Premji Group of Thailand - and Nectar Holdings of Mauritius. In fact, it is in touch with the Indian embassy in Singapore to seek information about the financial credentials of the Thai and Mauritian firms particularly about their ownership.

While the ministry officials describe the move to look into the antecedents of the two companies as a "precautionary measure for the first joint venture in this sector", the move is significant as a close associate of a former Congress minister is suspected to have played a significant part in the getting the three partners together. However, the SCI denies this.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.