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Essar Ship prepays Rs 130cr to ICICI Bank

Calcutta, Dec. 20: Buoyed by good performance, Essar Shipping has repaid Rs 130 crore loan, three years ahead of time to the ICICI Bank. The company had borrowed the fund in January 1999 at an interest rate of 12.88 per cent. The loan was due to mature in 2005.

Essar Shipping sources said the prepayment of the loans will help the company save a total interest of Rs 10.56 crore per annum. “This savings will add to the bottomline of the company both in the short and long term,” a senior executive said.

In the current quarter, the company, in aggregate, has prepaid a total of Rs 154.74 crore of its borrowings.

The flagship of the Rs 5,000-crore Essar group of the Ruias, expects to make a 15-20 per cent growth in its profitability for the current financial year despite the steep recession in various industries in the country.

The company has already achieved a distinction of making profits ever since its inception in 1975. It is all set to cross last year’s turnover of Rs 490 crore as it has been able to cut a niche for itself in the US market as a reliable crude carrier, sources said.

Currently, Essar Shipping has a diversified fleet of 33 vessels, storage facilities and supply chain management services. The company has received the certification as a quality service provider to major oil companies.

“We are currently a leading provider of international crude oil and petroleum products transportation services through a fleet of six double hull, double bottom Suezmax tankers of 140000 DWT and product tankers,” the executive said.

The company is in the process of bidding for the public sector enterprise, Shipping Corporation of India. “If we are able to corner SCI, we will be the largest domestic shipping company with all kinds of facilities,” the executive said.

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