The Union Cabinet today approved the proposal to allow Steel Authority of India (SAIL) and Rashtriya Ispat Nigam Limited (RINL) to undertake direct chartering of ships without going through the centralized chartering organization under the Ministry of Shipping and Road Transport, namely TRANSCHART. This decision will help in meeting the shortfall in the domestic availability of coking coal. SAIL and RINL at present import around 14-15 million tonnes of coking coal annually.
As per the existing government policy, vessels for shipment of imported coal by PSUs have to be chartered through TRANSCHART. Exemption of chartering ships through TRANSCHART has been given to both the steel PSUs.
As a result, SAIL and RINL will have better control of logistics, shipping and operations of importing coal and other raw material from overseas. The benefits of flexibilities flowing through direct chartering of operations would bring in a comprehensive logistic solution along with financial benefits to these PSUs.