24 JUL, 2012, NIDHI SHARMA, ET BUREAU
NEW DELHI: US sanctions against Iran have sounded the death knell for a 37-year-old India-Iran shipping company, started by ex-prime minister Indira Gandhi and the Shah of Iran as a mark of friendship between the two nations.
Operations of Irano Hind Shipping Company, in which Shipping Corporation of India has a 49% stake, are all set to be wrapped up. Islamic Republic of Iran Shipping Lines has a 51% majority stake in the company. According to sources, representatives of both the countries, on the board of Irano Hind Shipping Company, sat across the table last week in Teheran to discuss asset split. India had given the Iranian side its formula for a division, seeking oil tankers in the fleet of the company. However, Iran has given its own set of demands, telling India that both the sides must have a fair share of oil tankers and the not-so-lucrative bulk carriers.
A senior official, who did not wish to be named, told ET, "The company has to be wrapped up. There is a broad agreement over that. The two sides have also agreed to split assets."
Irano Hind Shipping Company was not a purely commercial venture. It was started in 1975 after late Indira Gandhi's visit to Teheran. Gandhi and the Shah of Iran wanted to cement ties and thought of starting the shipping line, mainly to ship iron ore from India's Kudremukh mines.
As India is still not going all out in support of the economic sanctions against Iran, the decision to wrap up the operations was purely a political call. The Opposition parties, especially the Left, have been insisting that India desist all pressure from the US to support such sanctions. Earlier, the shipping ministry had written to the external affairs ministry, seeking advice on the future course of action.
The shipping ministry has been keen on divesting its share because the company has been bleeding since the imposition of US sanctions beginning 2008. The company was accused of providing services to Iran's ministry of defence and Armed Forces Logistics. In 2010, the company was mentioned in a UN Security Council resolution, which imposed more sanctions on Iran for its missile development programme. Last year, the US imposed more sanctions and designated Irano Hind and its chief executive for alleged involvement in Iran's efforts to advance its missile programmes and transport military cargoes.
NEW DELHI: US sanctions against Iran have sounded the death knell for a 37-year-old India-Iran shipping company, started by ex-prime minister Indira Gandhi and the Shah of Iran as a mark of friendship between the two nations.
Operations of Irano Hind Shipping Company, in which Shipping Corporation of India has a 49% stake, are all set to be wrapped up. Islamic Republic of Iran Shipping Lines has a 51% majority stake in the company. According to sources, representatives of both the countries, on the board of Irano Hind Shipping Company, sat across the table last week in Teheran to discuss asset split. India had given the Iranian side its formula for a division, seeking oil tankers in the fleet of the company. However, Iran has given its own set of demands, telling India that both the sides must have a fair share of oil tankers and the not-so-lucrative bulk carriers.
A senior official, who did not wish to be named, told ET, "The company has to be wrapped up. There is a broad agreement over that. The two sides have also agreed to split assets."
Irano Hind Shipping Company was not a purely commercial venture. It was started in 1975 after late Indira Gandhi's visit to Teheran. Gandhi and the Shah of Iran wanted to cement ties and thought of starting the shipping line, mainly to ship iron ore from India's Kudremukh mines.
As India is still not going all out in support of the economic sanctions against Iran, the decision to wrap up the operations was purely a political call. The Opposition parties, especially the Left, have been insisting that India desist all pressure from the US to support such sanctions. Earlier, the shipping ministry had written to the external affairs ministry, seeking advice on the future course of action.
The shipping ministry has been keen on divesting its share because the company has been bleeding since the imposition of US sanctions beginning 2008. The company was accused of providing services to Iran's ministry of defence and Armed Forces Logistics. In 2010, the company was mentioned in a UN Security Council resolution, which imposed more sanctions on Iran for its missile development programme. Last year, the US imposed more sanctions and designated Irano Hind and its chief executive for alleged involvement in Iran's efforts to advance its missile programmes and transport military cargoes.
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