Ports to take charge of Dredging Corp

The Cabinet Committee on Economic Affairs has given ‘in principle’ approval for strategic disinvestment of 100% Government of India’s shares in Dredging Corporation of India Ltd (DCIL) to consortium of four ports namely, Vishakhapatnam Port Trust, Paradeep Port Trust, Jawahar Lal Nehru Port Trust and Kandla Port Trust.

Presently the Government holds 73.44% shares in DCIL.

The approval will further facilitate the linkage of dredging activities with the ports, keeping in view the role of the DCIL in expansion of dredging activity in the country as well as potential scope for diversification of ports into third party dredging.

The co-sharing of facilities between the company as well as ports shall lead to savings for ports, said a statement from the Public Information Bureau on 8 Nov 2018.

This would further provide opportunities for larger investment in DCIL as integration with ports shall help ineffective vertical linkage in the value chain.

The strategic disinvestment of DCIL shall be undertaken after conducting due diligence exercise by both the entities with the help of Advisors, appointed for the transaction. fiinews.com