With poor response to the e-auction attempt to sell away its new building though MSTC Ltd., formerly Metal Scrap Trade Corporation Ltd;,, the Dredging Corporation of India Limited (DCIL) has kept all options open on the building.
When contacted, Paradip Port Trust Chairman Rinkesh Roy, who is also the Chairman of DCIL, told The Hindu that they had not yet taken any decision.
“We are doing a cost-benefit analysis,” he said.
Four major ports
DCIL, a Schedule B miniratna category-I public sector enterprise, with headquarters in Visakapatnam, is now under strategic control of four major ports. After the Centre dropped the decision for strategic disinvestment of DCIL Visakhapatnam, Paradip, JNPT and Deendayal (Kandla) ports picked up 73.47% equity retaining the company under the government control.
The company invested about ₹45 crore on construction of five-floor and two basements building in posh Seethammadhara Housing Board Colony with a view to shifting its corporate office. However, with VPT, its landlord becoming a stakeholder in the company, such a need has been averted.
However, there is talk in various circles that two of the floors DCIL might occupy for its corporate office. There is no confirmation to such speculation.
DCI Non-Executive Employees’ Union honorary president V.S. Padmanabha Raju said instead of selling the property, the management should opt for relocating its head office to the new building.
He said that the Union government should release the company’s money locked up in the Sethusamudram works so as to strengthen its cash reserves.
DCIL is a profit-making company since its inception in 1976. Entry of private players in the dredging sector has made the environment quite competitive necessitating the company to focus on more investment on replacing its ageing fleet.
Dredging contract
The company’s ongoing dredging contracts at Haldia, Kochi and JNPT are progressing on expected lines even as the company has bagged contracts from the Indian Navy in Mumbai and at Nindakara Fishing Harbour, Kochi. The DCIL is expecting to achieve a turnover of ₹800 crore during current fiscal compared to ₹700 crore last year.
