A due diligence study to value the assets and liabilities of the Dredging Corporation of India (DCI) will be conducted as a prelude to the Centre’s decision to consider restructuring the equity base of the mini ratna company.
A committee, comprising senior officials of the Ministry of Shipping and chairmen of Visakhapatnam, New Mangalore and Paradeep ports, is examining various aspects of stake sale. After dropping the proposal to sell the Centre’s equity of 73.4%, the government is considering the offers made by the three major ports to pick up the equity.
Disinvestment of remaining equity has been done in the past in phases, leaving 73.4% to the GoI. The Union Cabinet had cleared the decision for strategic sale of the company headquartered in Visakhapatnam last year amid stiff opposition from the employees and trade unions.
Later, apprehending its fallout on the general elections due next year and the not-so-encouraging response from private parties, the government was believed to have announced recently that it had dropped its plans for privatisation of DCI.
Union Shipping Minister Nitin Gadkari said here during a review meeting that a Cabinet note was being prepared to consider the offers made by the three Visakhapatnam, New Mangalore and Paradip ports. Sources told The Hindu that VPT is keen on holding majority stake in DCI as the head offices of both the entities are located in Visakhapatnam. The order book position of the DCI, which has been earning profits since inception in 1976, is expected to increase with the ports picking up equity.
Besides meeting the requirements of the three ports for beach nourishment and dredging, it will also assured of getting orders from Kolkata-Haldia, Kandla and other majors.
DCI specialises in ensuring desired depths in the shipping channels of the major and minor ports, Navy, fishing harbours and other maritime organisations. It also takes up capital dredging for new harbours, deepening of existing harbours and maintenance dredging to upkeep required depths at various ports along the 5,700-km coastline.
DCI is poised to commence capital dredging for the proposed multi-basin at Cochin Port from September at a cost of ₹42.26 crore. It received a five-year contract for maintenance dredging in Hooghly estuary in the shipping channel of the Kolkata Port Trust for ₹1,119 crore.
It was awarded a five-year contract from Cochin Shipyard for ₹110 crore. During current year, DCI got capital dredging contract in Pussur channel from Mongla Port Authority (Bangladesh) amounting to ₹102 crore. It is executing a three-year dredging contract for Mumbai Port for ₹84 crore.
