The maritime regulator has decided to grant an interim operating licence to Varun Global, the new company floated by promoters of the troubled Varun Shipping,
“We have approved an interim licence for six months to Varun,” said the Director-General of Shipping, Gautam Chatterjee.
However, this alone may not allow the company to undertake trading operations. Chatterjee said the interim licence (in technical terms Documents of Compliance, or the DoC) will be issued to enable the company to undertake statutory surveys and dry-docking of the vessels which were stranded following the withdrawal of Varun Shipping’s DoC last month,
The company will have to fulfil all its commitments before going for trading operations, said an official.
Varun, the largest operator of Liquefied Petroleum Gas carriers in the country, lost its DoC following its failure to honour its financial commitments, including payment of wages to seafarers. The promoters of Varun have sought a fresh licence in the name of Varun Global, a ship management company.
The new company has been floated following a restructuring of group companies.
Seamen’s union leader Abdulgani Sarang said Varun is yet to fully clear the wage arrears of seafarers though the company made some payments.
“I am yet to get the payment details from the company,” Sarang said.
Meanwhile, the debt-ridden company is understood to have sold another gas carrier to competitor Mercator, its second such sale in the last one month, to raise funds. In March, Varun sold a large gas carrier for $30 million.
This may enable the company to pay its wage arrears and drydock dues, said a shipping analyst.
However, the Mumbai-based listed company is yet to inform its shareholders about its new plans. It has not the informed stock exchange about its decision to seek a fresh DoC under Varun Global, said a shareholder.