The Government has decided to sell off its entire public stake in
Dredging Corporation of India Ltd. (DCIL) brushing aside the protests from its
employees against the disinvestment move.
This decision aims to upgrade technology, improve capability, infuse
capital to buy necessary dredgers/equipments and instill experienced
professional management to optimize operations of the DCIL. The Department of
Investment and Public Asset Management (DIPAM) has obtained approval of the
Government to disinvest 100 per cent Government of India Equity in DCIL in one
go through two-stage auction process,
with the advice of the Transaction Advisor.
information was given by the Minister of State for Shipping Mansukh L Mandaviya
in a written reply in Rajya Sabha on February sixth.
government is considering a move to disinvest its 73.47 per cent paid up equity
capital in the Corporation through strategic sale with the transfer of
management control. The shipping ministry proposed to hold a pre bid meeting
shortly in a bid to clarify the queries raised by the prospective bidders.
be a lucrative deal for the buyers as the dredgers of the company alone would
cost more than eight thousand crores. The Visakhapatnam based company has as many
as 22 dredgers including three new dredgers purchased from a Netherlands based
company IHC at a cost of Rs 1600 crores nearly four years ago.
mainly involved in dredging both capital and maintenance dredging of ports,
beach nourishment, land reclamation and Marine construction. The company has
been a profit making firm right from its inception but of late was losing
tenders in public sector ports due to the hostile attitude of the government.
The company lost a major tender contract in Kandla port to a private firm by Rs
90 margin on the quotation prices the corporation sources said.