Government invited fresh bids on Tuesday for a 51 per cent stake in its largest shipping line, Shipping Corporation of India, a government notice said.

Under the fresh offer, foreign firms can bid for the controlling 51 per cent stake in the company. Earlier, they could bid for only 25 per cent equity.

The cabinet panel on privatisation decided last month to call for fresh bids for the firm as only two companies, both with limited experience in the sector, had expressed interest, according to government officials.

The notice posted on the website of the disinvestment ministry (www.disinvest.nic.in) said firms interested in the stake sale should submit their expression of interest by June 6.

The government holds 80.12 per cent of the equity in Shipping Corp which has a fleet of 86 ships and has also diversified into transportation of liquefied natural gas.

Shipping Corp's shares closed at Rs 70.40 at the Bombay Stock Exchange whose main index ended 0.59 per cent higher at 2,993 points.

India's privatisation programme, more than a decade old, has met with limited success due to stiff opposition from political parties and trade unions.

The government, which has consistently failed to meet privatisation targets in the past, hopes to raise Rs 132 billion through the sale of stakes in state-run firms in the financial year ending March 2004.