Shipping Corporation of India gets ₹2 billion income tax refund

By Admin

05 Feb, 2026

Introduction
State-owned Shipping Corporation of India (SCI) has received an income tax refund of ₹2 billion, offering a timely boost to its cash flows. The development is expected to strengthen the company’s liquidity and support its ongoing operational and fleet-related requirements.

Background of the Tax Refund
The ₹2 billion refund relates to income tax assessments of earlier financial years. According to people familiar with the matter, the amount has already been credited to SCI’s account. Such refunds typically arise from reassessments, adjustments, or favorable outcomes of past tax filings and disputes.

Impact on Cash Flow and Liquidity
The receipt of the refund is set to improve SCI’s liquidity position. Stronger cash flows provide greater financial flexibility, enabling the company to meet working capital needs, manage operational expenses, and support maintenance and deployment of its fleet without additional borrowing pressure.

Strengthening Operations and Fleet Requirements
SCI operates India’s largest and most diversified shipping fleet, covering crude oil tankers, product carriers, bulk carriers, and container vessels. The additional funds can help support fleet-related requirements such as upkeep, regulatory compliance, and efficiency-driven upgrades, aligning with the company’s ongoing operational priorities.

Focus on Efficiency and Balance Sheet Health
The timing of the refund is significant as SCI continues to focus on improving operational efficiency and strengthening its balance sheet. Enhanced liquidity not only supports day-to-day operations but also positions the company better for future strategic initiatives in a competitive and capital-intensive shipping environment.

Conclusion
The ₹2 billion income tax refund marks a positive financial development for the Shipping Corporation of India. By reinforcing cash flows and liquidity, the refund supports SCI’s operational stability and long-term focus on efficiency, fleet management, and balance-sheet resilience within India’s maritime sector.