The decision for disinvestment of the Dredging Corporation of India (DCI) is not based on profit earned by it. The NITI Aayog has been entrusted to identify the Central public sector enterprises for strategic disinvestment, said Pon Radhakrishnan, Minister of State for Shipping, in Parliament on Thursday to a question by Venkateswara Rao Maganti.
The Minister said the NITI Aayog in its report said it had been guided by the basic economic principle that the government should not continue to engage itself in manufacturing/ producing goods and services in sectors where the competitive markets had come of age and that such entities would perform better in the private hands due to factors such as technology up-gradation and efficient management practices.
On the present status of disinvestment, Mr. Radhakrishnan said an inter-ministerial group (IMG) had been constituted by the Department of Investment and Public Asset Management (DIPAM) for selection of intermediaries. Legal adviser had been selected by the IMG and an asset valuer by the selection committee by the Ministry of Shipping.
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On the profit made by the dredging major, he said the company had grossed up ₹15 crore in 2014, ₹16 crore in 2015, ₹17 crore in 2016 and ₹18 crore in 2017. He said the Ministry was aware that one DCI employee had committed suicide in protest against the proposed sale of the company and the terms and conditions of the strategic sale suitably addressed the employees’ concerns in the Share Purchase Agreement and Share Holders Agreement, which was to be signed by the government with the strategic buyer.
As regards manpower, offering of improved voluntary retirement scheme along with process of sale has been approved by the CCEA.