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Disinvestment process commences in Dredging Corporation of India

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.

The information was given by the Minister of State for Shipping Mansukh L Mandaviya in a written reply in Rajya Sabha on February sixth.

The 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.

This will 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.

DCI is 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.

 

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