Volatile market conditions had a severe impact on the tax-free bond offers of Dredging Corporation of India (DCI), Jawaharlal Nehru Port Trust and Ennore Port.

Incidentally, all the three entities under the Ministry of Shipping, which sought investment in long-term bonds, received poor response. As against Rs.3,500 crore sought by them — Rs.500 crore by DCI, Rs.1,000 crore by Ennore Port and Rs.2,000 crore by JNPT — together they could get less than Rs.200 crore, sources said.

Receives Rs.59 cr

When contacted, DCI Chairman-cum-Managing Director Capt. D. K. Mohanty confirmed the receipt of Rs.59.04 crore. This included Rs.10 crore each from Visakhapatnam Port and Paradip Port. DCI wanted to invest the money for acquiring a new trailer suction hopper dredger (TSHD) as part of its plan to augment its fleet.

DCI, which is the only public sector organisation involved in dredging, recently acquired a dredger with a capacity of 5,500 cubic metres. It has plans to acquire two dredgers with the same capacity during 2013-14.

Acquisition plan

The company is also examining a proposal to acquire another TSHD of 9,000 cubic meters capacity with part-financing by Paradip Port subject to approval by the government.

While JNPT wanted to mop up Rs.2,000 crore from the bonds for investing in reclamation work for its fourth terminal, Ennore had announced its intention to put the money in its expansion project.